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ENTREPRENEUR’S NAME: KHAN FARDEENINDUSTRY: FOOD AND BEVERAGESBUSINESS SUMMARY: MANUFACTURING AND SELLING OF NATURAL ICE CREAMS. NATURAL ICE CREAMS ARE MADE OF PURE FRUITS, DRY FRUITS, MILK/MILK SOLIDS WITHOUT ANY ARTIFICIAL ESSENCES, COLORS AND PRESERVATIVES.VENTURE STAGE:FULL PRODUCT READYINVESTMENT REQUIRED : 75,000,00-100,000,00 INR
INTRODUCTION The category of ice creams that is most widely prevalent throughout the country is mainly synthetic. By synthetic ice creams here, we mean the ones made using colors, essences, stabilizers, emulsifiers and so on. Very often the ice creams contain non dairy cream. Few of them contain traces of fruits and nuts in combination with artificial essences. Natural ice cream came to the scene with the advent of the famous brand from Mumbai(juhu). However, for some reasons the brand remain mostly confined to Mumbai and the region around. As such there is a great void in the market with respect to natural ice creams. NCR region, the entire north, central India, south India, and a large part of the west, everywhere there is a huge demand for this ice cream. The craze is so much that people sometimes specially source this ice cream all the way from Mumbai and around. On a larger scale, there is a possibility of the ice cream reaching the international market. We started the project some three years back at Nagpur and most of the energy has been invested in conducting in depth research and development to fabricate our special recipes and also in understanding the market. Our product quality is open for perusal and examination by now, a matter which is not related to argumentation but to an actual taste of the product. We are all set to create a great franchisee chain across all the major cities of the country. What is just required is an emphatic launch and a reinforcement of our brand. As per our survey there is a possibility of around twenty successful stores in the city of Delhi itself. We have a very effective coordinating team well experienced in manufacturing, management , marketing and overall execution. What we need is just finance and the project is all set to take off with full intensity!
VALUE PROPOSITION • The business proposal consists of starting a few company owned outlets followed by a chain of franchisee stores across all the major cities. Enabling this will require alliance with networks like franchisee India and the sorts. Providing regional franchisees is an effective medium to facilitate the growth of franchisees. • Our unique selling points include: • 100% natural product comprised of milk, fruits, dry fruits and other natural ingredients • Ice creams made with sugar free compound and honey not available with the competitor brand • A wide range of products which are constantly innovated with the use of our acquired expertise • A wide range of prices to suit the pockets of different segments. • Special schemes like membership cards giving attractive discounts to the members for their long term retention. This is not the trend in ice cream industry as of now. • Giving attractive offers for home deliveries and parties. • The first region to be targeted in this connection is NCR. As per our survey done with the aid of a classified in a local newspaper there is a huge demand for franchisees of this category of ice creams in entire Delhi. Existence of a well defined outlet in this region will instantly trigger the deal • The chief entry barrier naturally existing in the case of natural ice creams is the secret recipe of this category and non availability of high quality fruits in all parts of the country. The second barrier is the method of maintenance of these ice creams at the outlets keeping in view the shelf life of this product. The next barrier is diligence required in sourcing and synthesis of fruits which requires quite a bit of manual labor.
SALES STRATEGY/TECHNICAL MODEL • Our infrastructure at present consists of a small plant at Nagpur having a capacity to produce around 80 kg per day, an amount which can cater to 3 good outlets. To make the business scalable additional machinery has to be installed. The business is being operated in the nature of a partnership firm at present. The master mind of this creation is Mr. Khan Fardeen, a mechanical engineer from N.I.T. Allahabad. Starting with home experiments, he devoted considerable time for R&D to bring this product to exact form. The R&D is still continuing . Mrs. Ranjana , Miss Shehla Khan and Mrs. PremMahima is looking after the manufacturing and packaging of the product which is the core of this business. Mr. AnkurSinghal looks after marketing and purchases. Very recently Mr. Sanjay Ubale, having an experience of working in food line with prestigious companies has clubbed with us and is looking after the project expansion in collaboration with Mr. khan Fardeen. Mr. Manoj Kumar Gupta an established F.C.A. is an active supporter and a consultant in financial affairs. Last but not the least the project would not have been possible with the support of Mr. AnandSaraf, the silent investor. We operate via two outlets at Nagpur, one of which is the manufacturing site itself. There are no hassles with the expansion of the plant as per the manufacturing requirement. Multiple members have the technical know how. The customer base is small but has substantially grown over the last few years . The product has gained popularity in the most prestigious colleges and fests in the city and occasional party and marriage orders are there, apart from the counter sales. The region of Vidarbha was primarily chosen not for real brand building, but to allow ourselves the time for field R&D and also due to the strategic location of the place with respect to transportation.
COMPETITIVE ANALYSIS • The chief competitor as has been explained above is the famous brand from Juhu beach Mumbai. There are a few players who produce semi natural ice creams: like Fresh and Naturelle, Nature Fresh, Thanco Fresh. International brands like Baskin robbins also manufacture fruit based Ice creams, however artificial additives are there. The local player Gyani also makes similar stuff. However to reiterate our stand our chief competitor is Natural from Mumbai which is still not existent in a large part of the country(including NCR). The chief differences in offerings have been highlighted already in the slide no. 2(value proposition). The fundamental thing is the scarce supply of this produce vis-à-vis the upcoming demand and the popularity of this product triggered by the brand from Mumbai. Apart from ice creams, we intend to serve by way of chocolate shakes and smoothies and our very recently innovated yoghurt shakes. Some of the recipes are very unique and lacking in all the other existing brands as of now. One important point in this connection is the fact that our chief competitor is very conservative with respect to expansion and has stringent norms about the retail stores and provision of franchisees. This becomes an advantage for our brand.
RISK AND MITIGATION STRATEGIES • The chief risk in this business is comparatively short shelf life of this product due to presence of fresh fruits herein and lack of stabilizers. However this can be mitigated easily by downloading a small quantity of the product in the display freezer. To facilitate this we pack the ice creams in small packets of 1 to 2 kg. The second risk is the possible entry of the chief competitor in the market. However as already explained this can be mitigated by our vast range, price range(the competitor has a fixed price strategy)and constant innovation approach apart from attractive offers.
FINANCIALS/PROJECTIONS • Funding received so far= 15 lacs INR(self and partner) • Funding required(1st round)= 50 lacs INR (required immediately) • Funding required(2nd round)=25-50 lacs INR(required after three months of start)
