G.H.PATEL P.G.INSTITUTE OF BUSINESS MANAGEMENT.

Page 3
ACKNOWLEDGEMENT
It is really a matter of great pleasure for us to undertake & present this creative
&practical work, a project report on business development plan.This report has been
prepared by keeping in mind various aspects relating tomarket condition, financial
feasibility and operational feasibility as well.

INDEX
Sr.No.

Particulars

Page no.

1
INTRODUCTION 05
2
PERSONAL INFORMATION 07
3
PRESENT STATUS & MARKET POTENTIAL 08
4
TYPE OF UNIT & SITE SELECTION 10
5
COST OF PROJECT 13
6
MEANS OF FINANCE 13
7
PRELIMINARY EXPENSES 14
8
OPERATION PROCESS 15
9
FACILITIES REQUIRED 16
10
MANPOWER REQUIREMENT 17
11
UTILITIES 18
12
ADMINISTRATIVE EXPENSES 18
13
PROJECTED INCOME STATEMENT 21
14
PROJECTED CASH FLOWS 22
15
BREAK EVEN ANALYSIS 23
16
PROJECT IMPLEMENTATION SCHEDULE 25
17
CONCLUSION 26
18
BIBLIOGRAPHY 27

G.H.PATEL P.G.INSTITUTE OF BUSINESS MANAGEMENT. Page 5

INTRODUCTION
India is the second largest producer of vegetables in the world (ranks next to
China) and accounts for about 15% of the world�s production of vegetables. The
current production level is over 92 million MT and the total area under
vegetablecultivation is around 6.2 million hectares which is about 3% of the total
area undercultivation in the country. In case of vegetables, potato, tomato, onion,
cabbageand cauliflower account for around 60% of the total vegetable production in
thecountry. Vegetables are typically grown in India in field conditions; the
concept isopposed to the cultivation of vegetables in green houses as practiced in
developedcountries for high yields.India is the second largest producer of fruits &
vegetables in the world with anannual production of around 94 million tones. It has
the distinction of producingalmost all-tropical and exotic fruits and vegetables
because of varied climaticconditions. Due to the short shelf life of these crops,
as much as 30-35% of fruitsand vegetables perish during harvest, storage, grading,
transport, packaging anddistribution. Only 2% of these crops are processed into
value-added products.Hence, there is a need for maximum commercial utilization of
fruits and vegetablesand to adapt production and marketing activities to the
requirements of the worldmarket and to cater to domestic demand which, over the
past few years, has beenincreasing because of various socio-economic factors.Our
proposed business is to channelize the fruits and vegetables from the market
todirect customers through home delivery with freshness and good quality

Company Summary:
Fresh Mart will be a company which provides fresh fruits and vegetables to
thecustomers at reasonable price and at their convenience. The company will
beaiming for customer satisfaction and retention rather than on expansion and
hugegrowth. The company will be delivering fruits and vegetables at the door of
thecustomer. Customers in the western part of ahmedabad city do not have access
tothe informal vegetable markets and so, they have to purchase their
requiredproduces from the malls and super markets which sell these fruits and
vegetables athigher margins. The customer also do not mind to pay the extra price
for thequality produce which these retail formats provide. You will find it while
standingin the queue at reliance fresh or big bazaar that people are purchasing
their fruitsand vegetables for the whole week or for three to four days and are
paying bills of more than Rs. 500 for their fruits and vegetable requirements. In
this scenario,fresh mart will provide relief to the customers from going and
standing in the longqueues for their requirements. The convenience and quality
produce will ensure thecustomers satisfaction and will be the seed for the company
development andgrowth.

Mission:
To become a market leader in fruits and vegetables market in Ahmedabad citywithin 5
years.
Objective:
1. To provide qualitative fruits and vegetables to consumers at reasonable price.2.
To benefit from eliminating the limitations of existing traditional supply chain.

PRESENT STATUS AND MARKET POTENTIAL:

Basic market Information:
Currently the majority of the fruits and vegetables market is unorganized.Organized
retailers are also there in Ahmadabad city but they would not beforming more than
10% of the total market. Ahmadabad city have wholesale sabjimarket at Kalupur and
APMC at Saraspur. Customers of the city expect the qualityproducts at reasonable
price.
Existing Fruits and vegetables retailers in the area:
There are major organized players in this area such as Big Bazaar near ISKONtemple,
Star Bazaar at Shiv Ranjani cross road and Reliance Fresh having 3 storesin the
area. They pose a strong competition base for the company. Their sales dataduring
last year are as follow:
Expected Customers and Selected Areas:
The customers will be those people who want to spend the quality time with
theirfamilies and expect quality fruits and vegetables at their convenience.The
company is going to serve the major four areas of the Ahmedabad city
�
Prahalad Nagar, Satellite Area, Bodakdev Area and Thaltej Area. Combined
theseareas include around 125000 households. The company is aiming to get
1000customers initially.
Annual Market Need:
The annual consumption of fruits and vegetables in the Ahmadabad city can
beestimated at around Rs. 2000 crores annually.
Scope for Diversification:
Fresh Mart has huge scope for diversification in various other products like
FMCGand Grains. The company can also go for online business. Fresh Mart also
hashuge opportunity for expansion the market base as it will less capital
expenditure.Fresh Mart is also planning to procure the fruits and vegetables
directly from thefarmers which will open the flood of opportunity for the company
for trading with

G.H.PATEL P.G.INSTITUTE OF BUSINESS MANAGEMENT. Page 9

other organized retail stores, wholesale open market operations and easy
expansionfor the home delivery model.Though the company has many diversification
opportunities, it will insist more onsticking to the core business of fruits and
vegetables business. The company wantsto build a strong brand for the fresh fruits
and vegetables. The expansion of thehome delivery model will be the core focus for
the company growth andexpansion.
Risk Factor:
1.

Fresh Mart will have to strive hard to keep the delivery cost in control.2.

Procurement of the quality products and their quality maintenance whiletransit will
also require substantial system and efforts.3.

The price of the fruits and vegetables are very much volatile. Sudden priceincrease
may couch on the profit margin of the company.
Conclusion:
Though there are several competitors in the market of Ahmedabad city, Fresh
Martwill be able to achieve success through its core focus on the product quality
andhigh level of on time commitment.

Products:
Primary product of the company is fruits and vegetables. It will include all
theseasonal fruits & vegetables, off season fruits & vegetables.

Positioning:
Whenever customers need fruits and vegetables, �Fresh Mart� must come first in
their mind first. Fresh Mart will be positioned as the fresh fruits &
vegetablesprovider for on time delivery.Fruits like grapes, strawberry, blackberry
will be cooled at the assortment centreand then will be delivered. Only qualitative
fruits and vegetables will be packedand poor quality fruits and vegetables will be
assorted and sold in the wholesalemarket if possible.On time delivery schedule also
will be strictly adhered. Drivers will be negativelyreinforced for on time delivery
to the customers.Management concentration will be more on existing customer
satisfaction andcustomer retention rather than on expansion.
Segmentation:
Target segment will be upper middle and upper class people living in the
targetedarea. Target customers would be those housewives who do not want to
movearound for purchasing fruits and vegetables

Customer Relation:
Existing customers would be retained by providing fresh, hygienic and goodquality
fruits and vegetables; timely delivery is also highly insisted for highercustomer
satisfaction. In case of non delivery of the goods; those goods will bedelivered
for free on the next day. The customers will be allowed to change theirorder till
10pm.
Competition:
Fresh Mart will have competition from Reliance Fresh, Big Bazaar, Star Bazaar,More
Retail Store, local fruit & vegetable stores and fruits vendors &
vegetablesvenders.
Competitive Advantage:
Fresh Mart will be able to deliver goods at the customer�s home. Home Delivery
Model has ensured zero cost in real estate; which will help to serve customers
atlower/reasonable price. Loyal customer base creation will help for
sustainabledevelopment/growth

CONCLUSION
Looking at the overall business plan we can conclude that, as far as the need of
theconsumer is concern, it can be satisfied with the help of this business
model.Freshness is the aspect which matters as far as the fruits and vegetables
areconcerned. This model emphasizes home delivery system.The challenge for this
model will be inventory management, effective procurementand waste reduction and
cost reduction.As far as the profitability is concerned, this project is very
lucrative and attractive.