INTRODUCTION
Provision of canteen facilities at social institutions has become a thriving business at these times, where
people prefer to eat good food at much less cost. It’s very common now for institutions like hospitals,
colleges etc to have a well equipped canteen. The main advantage in this business is the availability of
ready market. One prerequisite of canteen business is the incessant supply of provisions and stationery,
preferably at their door step. M/s J.J Foods owned and run by Ms. Leelamma James, proposes to provide
continuing supply of provisions and stationery to such retail canteen customers.
PROMOTER
As mentioned, the unit will be owned and run by Ms. Leelamma James residing at Korattiyedath,
Muringoor P O, Chalakudy, and Thrissur. She is a double M A holder and has experience in this area of
business for the last fifteen years.
MARKET POTENTIAL
As illustrated above, the activity involves procuring materials in bulk quantities and supplying them to
retail canteens. The target market would be the institutions in and around Kochi. Being the commercial
capital of Kerala, there is no shortage for institutions who engage independent canteen services inside
their premises. Material requirements of these canteens are not met properly met by the existing
suppliers. The proprietress, by engaging proper infrastructure, to provide efficient and timely service to
the customers, intends to take maximum advantage of underutilized potential of the market.
LOCATION OF THE UNIT
The unit is located at Zeenath Building, C C 18/2339G, M N Thacho Road, Thoppumpady, Cochin. The
proximity to the target market enhances the profitability options.
INFRASTRUCTURE FACILITIES
All the infrastructure facilities required for the implementation of the project in form of storage, means
of transportation has already been taken care of.
RAW MATERIALS
Necessary talks have been made with the suppliers to make the materials available at the lowest cost
possible. The major source of supplies is made from the following units.
1. K.M.P Traders, Muvattupuzha
2. Seven Brothers, Muttam, Aluva
3. Pavizham Rice Mill, Perumbavoor
4. M.J Agencies, Thrissur
5. 3 Star Agencies, Kadayam, Tamil Nadu
MAJOR CUSTOMERS
The major chunk of the proposed customers are the canteens at the following places.
1. High Court of Kerala, Ernakulum
2. Lissie Hospital, Ernakulam
3. Kerala Lakshmi Mills, Olary
4. Agricultural University, Mannuthy
5. Divine Retreat Centre, Muringoor
COST OF THE PROJECT
The total cost of the project is estimated at Rs. 109.14 lakhs, which includes a working capital
requirement of Rs. 100.14 lakhs. The promoter would bring in Rs. 39.14 lakhs and the rest is proposed to
be funded by an overdraft facility from a financial institution. The details are provided in annexure
ASSUMPTIONS
1. It is assumed that the materials procured are supplied to the customers after charging a profit
margin of 6%.
2. Tax has not been considered as it is assumed to be a personal expense of the proprietor and is
covered in the drawings.
3. It is also assumed that a minimum stock of 40 days requirement is to be kept to meet sudden
demand. A normal credit period of a week is allowed to the customers to make the payments.
4. Escalation of price is not considered.
