ENTREPRENEURSHIP DEVELOPMENT INSTITUTE OF

INDIA

DETAILED PROJECT REPORT

ON

Establishing a Peanut Trading Business

PGDM (E) 2023 - 2025

Faculty Guide: Name of the Student:

Dr. Sheetal Thomas Dhruv Tavethiya

Mr. Shiv Kothari (2023E068)

1
 DECLARATION

I HEREBY DECLARE THAT THE REPORT TITLED “Establishing a Peanut Trading

and Export Business” IS PREPARED BY ME DURING THE PROJECT WORK– I,
(FOURTH& FIFTH TRIMESTER) OF PGDM-E, 2023-25.

Deadline for Submission: 01.04.2025

Date of Submission: 04.04.2025

(Name and Signature of the Student)

CERTIFICATE

THIS IS TO CERTIFY THAT THE REPORT TITLED “Establishing a Peanut Trading

and Export Business” AS A PART OF PROJECT WORK, (FOURTH& FIFTH
TRIMESTER) IS SUBMITTED BY Dhruv Tavethia, PGDM-E, 2023-25.

(Name & Signature of the Faculty Guide)

Date:

2
 ACKNOWLEDGMENT

I would like to express my sincere gratitude to my mentors, Dr. Sheetal Thomas and Mr.
Shiv Kothari, for their invaluable guidance, encouragement, and continuous support
throughout the preparation of this Detailed Project Report (DPR) on “Establishing Peanut
trading and export Business”. Their expert insights, constructive feedback, and
unwavering patience have been instrumental in refining my ideas and enhancing the
quality of this report.

I extend my heartfelt appreciation to the Entrepreneurship Development Institute of India

(EDII) for providing me with an excellent academic environment, access to resources,
and the opportunity to work on this project. The knowledge and skills I have acquired
during my studies at EDII have played a crucial role in shaping my understanding of
business development and entrepreneurship, which are reflected in this DPR.

I would also like to thank my family, friends, and peers for their constant support,
motivation, and encouragement throughout this journey. Their belief in my abilities and
willingness to assist me whenever needed have been a great source of strength.

Finally, I acknowledge the contributions of industry experts, research papers, case

studies, and various resources that have provided valuable information and data for this
project. This DPR is a result of collective efforts, and I am deeply grateful to everyone
who has helped me along the way.

[Dhruv Tavethia]

Entrepreneurship Development Institute of India (EDII)

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 TABLE OF CONTENT

SECTION TITLE PAGE NO.

A Executive Summary 6
B General 10
1. Introduction 10
2. Government Policy and support 11
3. Promoter Background 11
4. Locational Advantage 12
C Market 13
1. Industry Research 13
2. Business Idea, pain points and solution 14
3. Target Market 15
4. Market Feedback 15
5. Market Size 16
6. Competitor Analysis 18
7. Details of Existing Players 20
8. Present and future scope of market opportunity 21
9. Proposed Marketing channels 22
10. Pricing Considerations 23
11. Outline of Promotional plans 23
12. Go to Market Strategy 24
D Technology 25
1. Alternatives available 25
2. Technical challenges and solutions 25
3. Technology Commercialization 25
E Infrastructure/Utilities 26
1. Equipment Required 26
2. Locational Advantage and its Justification 28
3. Exceptional Utilities 30
F Finance 31

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 1. Cost of Project 31
2. Means of finance 31
G Risk Involved 32
H Implementation 33
1. Time Required 33
2. Critical Areas 33
I Key Success Factors & Challenges 34
1. SWOT Analysis 34
2. Key Success factors 35
3. Key challenges and proposed action plan 35
J Data Sources/References 36
1. Data Sources/ References 36
2. Assistance sought 36
K Annexures
1. Promoter’s Biodata 37
2. Projected Profit & Loss sheet 37
3. Cash Flow Projections 38
4. Projected Balance Sheet 39
5. Proposed Organization chart and annual manpower 40
costs
6. Working Capital Assessment 40
7. Cost of Project & Depreciation Calculation 41
8. Loan Repayments 41
9. Sales Projections 42
10. Overheads 42
11. Raw Materials calculations 42
12. Means of Finance 43
13. Break Even Analysis 43
14. Calculation of Debt Equity Ratio 43
15. Payback Period Calculations 44
16. IRR Calculations 44
17. Interest Coverage Ratio 45
18. Key Indicators of the Project 45

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A. Executive Summary

1. A Brief of Business Idea (Problem and Solution)

The business aims to export and trade high-quality peanuts sourced from Junagadh, Gujarat,
India. The company will focus on sourcing, processing, packaging, and exporting peanuts to
international markets. The target markets include indian markets and countries with growing
demand for healthy, nutritious, and organic food products, such as the Middle East, Europe,
and Southeast Asia.

The idea stems from the global demand for nutritious, plant-based protein and organic foods.
While peanuts are one of India’s major agricultural exports, there is a need for consistent
supply, high-quality (preferably organic) peanuts that meet international food safety standards.
Existing supply chains often fail to meet these high demands, leaving international markets with
gaps in supply.

Problem:

 Inconsistent Quality and Supply: There is an issue with the supply of high-quality
peanuts due to varying farming practices, quality control gaps, and inconsistent post-
harvest handling.
 Safety and Quality Assurance: Many international markets have stringent food safety
standards (e.g., HACCP, ISO), which are not always met by existing peanut suppliers
from India and other regions.
 Supply Chain Disruptions: Global trade disruptions and poor logistics infrastructure can
delay the delivery of high-quality peanuts.

Solution:

 Sourcing: The business will establish long-term relationships with local peanut farmers
in Junagadh to secure premium-grade Groundnuts.
 Processing: The peanuts will undergo cleaning, grading, color sorting and
packaging at a modern facility to ensure they meet international food safety
standards (ISO, HACCP).
 Export: The company will create a reliable and efficient distribution network to sell it
into indian market at premium price as well as to export the peanuts, focusing on high-
demand markets like the Middle East, Europe, and Southeast Asia. Emphasis will be
placed on high-quality, organic, and traceable products.

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2. Expected Initial Investment, Return on Investment (ROI), and Payback Period

Initial Investment Estimate:

Capital Cost of the Project

Detailed
Sr.No. Particulars Project Cost
Annexure

1 Land & site development: 24,00,000.00

2 Buildings 35,00,000.00
3 Plan & Machinery / 95,00,000.00
equipments
4 Infrastructure 12,00,000.00
5 Furniture 45,000.00
6 Electrical Installations 70,000.00
7 Other Assets 1,20,000.00
8 Preliminary & Preoperative 80,000.00
Expenses
8 Margin for working capital 60% 54,30,479.80

TOTAL 2,23,45,479.80

Total Initial Investment: ₹ 2,23,45,479

Return on Investment (ROI):

The projected revenue model is based on the sale of high-quality peanuts and value-added
products (roasted, salted peanuts, peanut butter, etc.) to domestic and international buyers.

Projected Annual Revenue: ₹ 5,00,00,000 from the sale of raw peanuts and value added peanuts.

Expected ROI:

 Based on an estimated annual profit of ₹ 1,16,25,000, the Return on Investment (ROI)

after the first year of operation would be approximately 52%.

Payback Period:

 Considering the initial investment of ₹ 2,23,45,000 and an expected profit of ₹

1,16,25,218 per year, the payback period for the business is approximately 1.92 years
or 23 Months.
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3. Implementation schedule

Phase 1: Market Research & Planning (1-3 Months)

Conduct market research, secure farmer partnerships, and develop the business plan.

Phase 2: Facility Setup & Licensing (3-6 Months)

Set up the processing facility, obtain certifications, and install necessary equipment.

Phase 3: Sourcing & Production Setup (4-6 Months)

Finalize farmer contracts, source peanuts, and initiate production and quality control.

Phase 4: Marketing & Export Strategy (6-9 Months)

Finalize branding, build buyer relationships, and participate in trade events.

Phase 5: Distribution Network (9-12 Months)

Begin trading & exports, establish logistics, and scale production based on demand.

Phase 6: Expansion & Value-added Products (12-24 Months)

Introduce value-added products, expand to new markets, and increase production capacity.

8
4. Findings & Conclusion

Findings:

Strong Demand for Peanuts: There is consistent indian market and global demand for
peanuts, especially in regions like the Middle East, Europe, and Southeast Asia, driven
by their nutritional value and usage in various food products.

Quality Assurance Challenges: Existing suppliers face difficulties maintaining

consistent quality and meeting international food safety standards, leaving a gap in the
market that this business can fill.

Government Support: The Indian government has a favorable policy environment for
agricultural exports, offering incentives and subsidies to businesses in this sector.

Scalability Potential: The business has considerable growth potential, not only by
increasing peanut production but also by expanding into value-added products like
peanut butter, oil, and roasted peanuts, which will cater to a broader consumer base.

Conclusion: The proposed business of exporting high-quality peanuts from Junagadh, Gujarat,
offers a unique opportunity in the agriculture export sector. With strong demand for
peanuts, especially in international markets, and a robust export strategy, the business is well-
positioned to succeed. Additionally, by ensuring high standards of quality control, compliance
with international certifications, and developing value-added products, the business can create a
competitive edge in the market.

Financially, the business offers promising returns, with a payback period of just over 23
months, and considerable growth potential as demand for healthy and plant-based foods
continues to rise globally.

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B. General

1. Introduction: The Product/Service and Its Applications

Product Overview:

The proposed business focuses on the export and trading of high-quality peanuts sourced from
Junagadh, Gujarat, India. The peanuts will undergo rigorous cleaning, grading, color sorting
and packaging before being exported to international markets. The product offerings will
primarily be raw peanuts, but the company will also explore value-added products such as
roasted peanuts, peanut butter, and peanut oil as the business grows.

Peanuts, known for their high nutritional value, are widely consumed in various forms globally.
They are rich in proteins, healthy fats, and essential vitamins, making them a staple in many
diets. The product range will be targeted at consumers, food manufacturers, snack companies,
and health-conscious individuals, especially in indian regions and regions such as the Middle
East, Europe, and Southeast Asia, where peanuts are popular.

Applications:

Food Industry: Peanuts are used in multiple food products such as snacks, confectionery
(e.g., peanut brittle), sauces, and garnishes. Roasted and salted peanuts are popular as a
snack in many cultures.

Peanut Butter Production: Ground peanuts are processed into peanut butter, a popular
product in countries like the United States, Canada, and Europe. Peanut butter is used
in spreads, snacks, and various food preparations.

Oil Extraction: Groundnut oil is a commonly used cooking oil due to its neutral flavor
and high smoking point. It is also used in the cosmetic industry.

Animal Feed: Peanut meal, the by-product from oil extraction, is rich in protein and used
as animal feed.

Health Foods: There is a growing trend towards plant-based foods, and peanuts are a
primary source of protein in vegetarian and vegan diets. Peanuts are also used in energy
bars, protein powders, and other health-conscious snack products.

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2. Government Policy & Support

The Indian government has consistently supported the agricultural export sector, including
peanuts, through various policies, initiatives, and schemes to enhance exports and improve
infrastructure. Some of the key support mechanisms and policies are:

Export Promotion Schemes: The Indian government offers incentives under schemes
like the Merchandise Export from India Scheme (MEIS), which provides export
incentives and duty remission to exporters. This helps reduce export costs and enhance
competitiveness in international markets.

Agricultural Export Zones (AEZ): Gujarat, where Junagadh is located, falls under the
Agricultural Export Zone scheme. The government provides financial support to
businesses in these zones to develop infrastructure and logistics for exports.

Farming Support Programs: The National Mission on Edible Oils (NMEO) and other
crop-specific programs support peanut farmers in India by improving production
techniques, quality, and yields, which ultimately benefits the peanut export sector.

Food Safety Standards: The government, through agencies such as the Food Safety and
Standards Authority of India (FSSAI), ensures that exported agricultural products meet
international standards. Obtaining HACCP (Hazard Analysis Critical Control Point) and
ISO certifications for the production facility is essential to comply with these standards.

Customs and Trade Facilitation: The government has simplified the customs clearance
process for agricultural exports and has worked towards enhancing infrastructure like
ports, highways, and cold storage facilities to support the efficient export of products like
peanuts.

Subsidies for Organic Farming: If the business decides to include organic peanuts in
the product range, there are various government subsidies available under organic
farming schemes, including those for certification and promoting organic farming.

3. Promoter Background

 Name: Dhruv Tavethia

 Address: Junagadh, Gujarat
 Date of birth: 02/06/1999
 Educational qualification: B. Tech. in Civil Engineering, PGDM- Entrepreneurship
 Project location: Junagadh
 Family Background: Real Estate, Land and Building Developers

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4. Locational Advantage

The business will be located in Junagadh, Gujarat, a prime location for groundnut
cultivation. Junagadh is renowned for producing some of the highest-quality peanuts in India
due to its ideal climate, soil conditions, and established farming practices.

Here are the key locational advantages:

Proximity to Peanut Farms: Junagadh is one of India's leading peanut-growing regions.

Being located in the heart of this region offers easy access to a consistent and high-
quality supply of peanuts, minimizing transportation costs and ensuring freshness.

Established Peanut Production Hub: The region has a well-established agricultural

infrastructure, including trained farmers, agriculture experts, and agro-processing units.
This helps ensure a reliable supply of high-quality peanuts and facilitates easier
procurement.

Access to Ports: Junagadh is strategically located in Gujarat, which has several major
ports like Kandla Port and Mundra Port. These ports facilitate the efficient export of
peanuts to international markets. The proximity to these ports reduces logistical costs and
time for international shipping.

Transport Connectivity: Junagadh is well-connected to other key cities in Gujarat (like

Ahmedabad, Surat, and Vadodara) and to national highways, ensuring efficient
transport of raw materials and finished goods.

Supportive Ecosystem: Gujarat has a business-friendly environment, with a strong

network of support services such as packaging, warehousing, cold storage, and
transportation. Additionally, government incentives for agricultural businesses and
exporters add to the attractiveness of this location.

Climate and Soil: The climate in Junagadh is conducive to growing high-quality

peanuts. The region benefits from fertile soil and ideal climatic conditions that enhance
crop yield and quality, making Junagadh a preferred location for peanut cultivation.

Skilled Workforce: The presence of agricultural colleges, training institutes, and a

skilled workforce in Gujarat makes it easier to hire workers with the right skills for the
processing plant.

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C. Market
1. Industry Research

Industry Size:

1. Global Peanut Market Size and Scope

The global peanut market is projected to grow from approximately $20 billion in 2023 to $32
billion by 2027, reflecting a compound annual growth rate (CAGR) of about 7% (Research and
Markets, 2023). The global demand for peanuts is expected to reach 8 million tons by 2023, with
major consumption concentrated in North America, Asia, and Europe. The United States is the
largest consumer of peanuts, accounting for approximately 30% of global consumption, followed
closely by China, which has a growing demand for both domestic consumption and export (FAO,
2022). Additionally, Europe is increasingly importing peanuts for snack foods and culinary uses,
further expanding the market scope.

2. Peanut Production in India

India is the largest producer of peanuts globally, accounting for roughly 35% of the world’s total
production, which was approximately 6 million tons in the most recent harvest year (Ministry of
Agriculture, India, 2023). Gujarat is the leading state in peanut production, contributing nearly
40% of the national total. The state has about 1.5 million hectares dedicated to peanut
cultivation, with an average yield of approximately 1,800 kg per hectare. Moreover, India’s
diverse agro-climatic conditions allow for the cultivation of various peanut varieties, including
Java, Bold, and Spanish, catering to different market demands.

3. Export Potential

India's peanut exports were valued at around $1.5 billion in 2023, with significant portions
shipped to markets in the Middle East, Europe, and Asia (APEDA, 2023). Major importers
include countries like the United States, China, and the European Union, with the U.S. alone
accounting for over 25% of India’s total peanut exports. Furthermore, recent trade agreements
and partnerships have opened new markets in regions such as Southeast Asia and Africa,
enhancing India's export potential.

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2. Business Idea, Pain Points, and Solutions – Clear Value Proposition

Business Idea:
The business will focus on both trading peanuts within India and exporting high-quality peanuts,
including raw and value-added products (roasted peanuts, peanut butter, peanut oil), to
international markets. It will serve both domestic and global demand for healthy and sustainable
food options.

Pain Points & Solutions:

1. Inconsistent Quality

Solution: Direct sourcing from trusted local farmers in Junagadh, ensuring

premium quality peanuts, backed by certifications like ISO and Codex
Alimentarius, for both domestic and international markets.

2. Demand for Sustainability

Solution: Focus on eco-friendly farming practices with peanuts that enrich soil
naturally, supporting both local farmers and the environment.

3. Limited Product Variety

Solution: Offer a broad product range (raw, roasted, peanut butter, peanut oil)
with custom solutions like private labeling for both Indian retailers and
international buyers.

4. Access to Global and Local Markets

Solution: Utilize Junagadh’s strategic location for smooth trade within India and
facilitate international exports. An online platform will ensure easy access for
both domestic and global consumers.

Value Proposition:
The business delivers high-quality peanuts with a strong focus on sustainability, a diverse
product range, and accessibility in both domestic and global markets, ensuring consistency
and premium offerings for a wide customer base.

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3. Target Market – KYC (Know Your Customer) and Buyer Persona

Know Your Customer (KYC):

B2B Buyers: Indian and International wholesalers, distributors, and retailers of raw
peanuts and value-added products (like roasted peanuts, peanut butter, peanut oil).

Geographies: Targeting Middle Eastern, European, and Southeast Asian markets with
rising demand for high-quality organic peanuts.

Buyer Persona:

Buyer Type: Retail chains, health food stores, snack manufacturers, and exporters.

Demographics: Typically large food manufacturers or retail companies that need high-
quality and certified organic peanuts.

Psychographics: Companies focused on healthy, sustainable, and organic food options

for their consumers.

4. Market Feedback based on findings of the market research

 Growing Demand for Varieties and Processed Products: Adapt supply strategies to
focus on specific peanut varieties and processed products in response to market feedback.

 Regulatory Compliance: Stay updated on international quality and safety standards to

ensure compliance and avoid trade disruptions.

 Competitive Analysis: Brand Awareness: Invest in marketing to enhance visibility and

reputation against established international brands.
Consumer Education: Provide educational content on the nutritional

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5. Present and Projected Market Size, Market Growth Potential, and Market Share
(5-7 years)

Present Market Size:

Global Peanut Market (TAM): The global peanut market is valued at approximately
$32 billion in 2023 and is expected to reach $35 billion by 2027. This includes raw
peanuts, processed products like peanut butter, peanut oil, and snacks.

Indian Peanut Market (SAM): India’s share in the global peanut market is valued at $5
billion. India remains the largest producer and exporter of peanuts globally, with Gujarat
contributing to around 40% of the country’s peanut production.

Junagadh’s Market (SOM): The local market for Junagadh-based businesses can be
estimated at $1 billion. This represents the realistic portion of the market that businesses
in Junagadh can capture, factoring in competition and export potential.

Projected Market Size (5-7 Years):

Global Market Growth: The global peanut market is projected to grow at a compound
annual growth rate (CAGR) of 3-4% over the next 5-7 years, driven by the increasing
awareness of health benefits, the rise in demand for plant-based protein, and growing
consumption in emerging markets.

Indian Market Growth: India’s peanut exports, currently valued at $1.5 billion, are
expected to increase as the global demand for high-quality peanuts continues to grow.
The export value is projected to reach $2 billion by 2027, with Junagadh’s contribution
seeing a steady rise, especially in value-added products like peanut butter and snacks.

Junagadh’s Market Potential: With Junagadh’s premium quality peanuts and the
strategic positioning of businesses, Junagadh-based exporters can increase their share of
the $1 billion market to approximately $1.2 billion by 2027. Growth will be driven by
expanding exports to emerging markets like Southeast Asia and Africa, as well as a
stronghold in traditional markets like the U.S. and Europe.

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Market Growth Potential:

Health and Wellness Trends: Rising demand for plant-based protein and healthier snack
options will contribute to an expanding market for peanuts. The global market for plant-
based proteins is expected to reach $27 billion by 2027, creating a massive opportunity
for peanuts.

Emerging Markets: Southeast Asia, Africa, and other regions are showing increased
demand for peanuts, driven by the rising middle class, changing dietary habits, and a
need for affordable protein. These regions offer significant potential for expansion, with
an estimated $500 million market potential for Junagadh-based exporters.

Value-Added Products: The market for value-added peanut products (peanut butter,
snacks, oils) is rapidly growing, with the global peanut butter market expected to reach
$4.4 billion by 2025. Junagadh, producing premium peanuts, is well-positioned to capture
this market through processed goods exports.

E-Commerce and Direct Sales: The shift to e-commerce and direct-to-consumer sales
channels is expected to increase accessibility to international markets. By leveraging
online platforms, businesses in Junagadh can directly tap into health-conscious
consumers and niche markets.

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6. Competitor Analysis

Competitor Name Location Market Strengths Weaknesses Products

Position Offered
Agrocrops Exim Chennai, Leading Strong High Raw
India peanut network of dependency peanuts,
exporter from local on bulk peanut
India farmers, buyers, kernels,
large-scale price blanched
exports to fluctuations peanuts.
Europe and in
Asia. international
markets.
Shreeji Peanut Junagadh, Prominent Proximity Limited Raw
Industries Gujarat local to peanut brand peanuts,
processor and farms in recognition peanut oil,
exporter Gujarat, outside peanut
focus on India. butter.
high-quality
Java and
Bold
varieties.
Bajaj Pulses Ahmedabad, Mid-sized Strong Less Raw
Gujarat peanut domestic diversified peanuts,
exporter market export peanut
presence, markets, kernels.
access to focus on
Gujarat’s raw peanuts
peanut only.
farms.
Olam Global (HQ: Global leader Strong Competition Processed
International Singapore) in agricultural supply with local peanuts,
commodities chain suppliers in peanut oil,
network, India, peanut-
diversified higher based
portfolio, operational snacks.
extensive costs.
market
reach.

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 Advanced Higher
processing production
Peanut
Leading technology, costs,
butter,
ADM (Archer United global food strong competition
roasted
Daniels Midland) States processing presence in from
peanuts,
company North emerging
peanut oil.
America markets like
and Europe. India.
Focus on
Small-scale
organic and
operation
non-GMO Organic
Growing compared
Parivar Agro Rajkot, peanuts, peanuts,
Indian peanut to larger
Foods Gujarat expanding peanut
exporter firms like
presence in kernels.
Olam or
premium
ADM.
markets.
Limited
Local
export
sourcing
Local player reach, Raw
from
with lower peanuts,
Khedut Feeds & Junagadh, Junagadh
expanding economies peanut oil,
Foods Pvt. Ltd. Gujarat farmers,
export of scale peanut
good quality
capacity compared flour.
control and
to global
certification.
firms.
Advanced
R&D in Strong
Peanut oil,
Key global peanut- competition
peanut
Golden Peanut United player in based in price-
butter,
and Tree Nuts States peanut products, sensitive
roasted
processing extensive markets like
peanuts.
supply India.
chain.
Focus on
high-
quality, Limited to Peanut
Leading
value-added select butter,
Bhavnagar, peanut
VK Industries peanut markets like peanut
Gujarat exporter from
products, the Middle kernels,
Gujarat
growing East. peanut oil.
international
footprint.

19
7. Details of existing players, their names, market share and marketing channels

1. Agrocrops Exim Ltd.

Market Share: Leading exporter from India, large-scale exports to Europe and Asia.
Marketing Channels: B2B sales through wholesalers, food processors, and large-
scale retail chains.

2. Shreeji Peanut Industries

Market Share: Prominent local processor and exporter in Gujarat.

Marketing Channels: Local distribution to wholesalers and retailers, limited export
partnerships.

3. Bajaj Pulses

Market Share: Mid-sized exporter, strong presence in the domestic market.

Marketing Channels: Local wholesalers, regional exports.

4. Olam International

Market Share: Major global player with significant market reach.

Marketing Channels: B2B global distribution, targeting food processors, large
retailers, and multinational companies.

5. ADM (Archer Daniels Midland)

Market Share: Leading global food processing company with a solid market
presence in North America and Europe.
Marketing Channels: Retail distribution through supermarkets, wholesalers, and
food manufacturers.

6. Parivar Agro Foods

Market Share: Growing exporter in India with a focus on organic peanuts.

Marketing Channels: Direct sales to health food stores, organic food chains, and e-
commerce platforms.

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 7. Khedut Feeds & Foods Pvt. Ltd.

Market Share: Local player expanding its export presence.

Marketing Channels: Local distribution, export via emerging trade routes, and trade
shows.

8. Golden Peanut and Tree Nuts

Market Share: Key player in peanut processing in North America.

Marketing Channels: B2B sales through supermarkets, large-scale food
manufacturers, and retail chains.

9. VK Industries

Market Share: Leading peanut exporter in Gujarat with growing international

Marketing Channels: Export through wholesale and B2B sales, regional distribution
targeting Middle Eastern retailers.

8. Present and Future Scope of the Market Opportunity

Present Market Opportunity: The global peanut market is expanding due to increasing health
awareness, with consumers seeking plant-based protein and nutritious snacks. India, as the largest
producer, is well-positioned to meet both domestic and international demand, particularly from North
America, Europe, and the Middle East. In 2023, India’s peanut exports were valued at $1.5 billion,
with demand for raw and processed peanut products growing. The rise of e-commerce provides new
opportunities for direct-to-consumer sales, particularly for health-conscious and organic products.
Additionally, emerging markets in Southeast Asia and Africa are experiencing rising peanut
consumption, driven by growing middle-class incomes and demand for affordable protein.

Future Market Opportunity (Next 5-7 Years): The future scope is highly promising, with
significant growth in value-added peanut products like peanut butter, snacks, and peanut oil. The
global peanut butter market is projected to reach $4.4 billion by 2025, and the demand for plant-
based proteins is set to rise to $27 billion by 2027. Junagadh, with its premium peanuts, has an
opportunity to capture these markets. Emerging markets in Southeast Asia, Africa, and the Middle
East present substantial export growth potential. Furthermore, the increasing preference for
sustainable and organic products aligns with the eco-friendly nature of peanuts, providing a niche for
organic and certified peanuts in premium markets. Technological advancements in product
development and digital marketing will further enhance global market access and customer
engagement.

21
9. Proposed Marketing Channels, Reasons, and Feasibility of Using Those Channels

Proposed Marketing Channels:

1. B2B Sales Channels:

Wholesale Distributors: Partnering with distributors who supply peanuts to food

manufacturers, retailers, and wholesalers.

Direct Export to International Markets: Utilizing established export channels to

sell directly to international buyers in North America, Europe, and the Middle East.

2. E-commerce & Online Platforms:

Online Marketplaces (Amazon, eBay, etc.): Establishing an online presence for

selling packaged peanuts and value-added products to health-conscious consumers
globally.

Brand Website & Direct-to-Consumer Sales: Setting up an e-commerce website to

sell directly to consumers, offering both raw and processed peanut products.

3. Retail and Supermarket Chains:

National Supermarkets and Health Stores: Supply packaged peanuts and peanut-
based products to national and regional retail chains.

Specialty Organic Stores: Focusing on health-conscious and organic products in

niche markets.

Reasons and Feasibility:

B2B Sales Channels are essential for securing long-term, stable revenue from large-scale
buyers like food manufacturers and distributors. Exporting directly to international markets
will cater to high demand regions like the U.S. and Europe.

E-commerce aligns with the growing trend of online shopping, especially among younger
consumers. Direct-to-consumer sales via online platforms allow for broader market reach and
a more personalized customer experience.

Retail Channels enable access to mass-market customers and provide visibility for the
products in high-traffic locations. It also allows the brand to tap into a large volume of
consumer purchases, especially for peanuts and snacks.

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10. Pricing Considerations Vis-à-Vis Competitors

Pricing Considerations:

Cost-Plus Pricing Strategy: Pricing will be based on the production cost of peanuts, processing
costs, packaging, and logistics, with a reasonable margin added. For value-added products, like
peanut butter, a higher markup will be applied based on the added value of processing.

Competitor Benchmarking: Price comparisons with global competitors (e.g., U.S., China) will
guide pricing strategy. India's pricing advantage lies in the lower production costs due to efficient
farming practices in Junagadh.

Premium Products Pricing: Organic, sustainable, or specialized peanut products (e.g., peanut
butter, organic peanuts) will be priced at a premium to cater to health-conscious consumers and
niche markets.

Bulk and Contract Pricing: Offering discounts for bulk orders and long-term contracts to food
manufacturers and retailers, which incentivizes larger and repeat orders.

Competitive Advantage: By focusing on high-quality, sustainable, and locally-sourced peanuts, the

business can differentiate itself through product quality rather than competing solely on price.
Competitive pricing will be balanced with premium offerings to attract both cost-sensitive and
quality-conscious customers.

11. Outline of Promotional Plans

Promotional Strategies:

Digital Marketing:

o SEO and Content Marketing: Developing a strong online presence through search
engine optimization and content related to the health benefits of peanuts.
o Social Media Campaigns: Utilizing platforms like Instagram, Facebook, and
YouTube to engage health-conscious consumers, promoting the nutritional benefits
and sustainability of peanuts.
o Influencer Partnerships: Collaborating with health and wellness influencers to
endorse peanut products.

Trade Shows and Exhibitions:

o Food Expos and International Trade Fairs: Participating in trade events to

showcase products to potential buyers, especially from global food manufacturing and
retail sectors.

23
 Sampling and Promotions:

o In-Store Sampling: Offering free samples at supermarkets and health stores to

introduce the products to consumers.
o Discounts and Promotions: Running seasonal or festive discounts to boost sales and
attract first-time buyers.

Public Relations (PR):

o Press Releases: Announcing new product launches, sustainability initiatives, or

certifications (e.g., organic or fair trade) through media outlets to increase brand
visibility.

12. Go-To-Market Strategy

Market Entry Strategy:

Domestic Market Entry:

o Local Market Focus: Initial focus on the domestic market in major Indian cities such
as Mumbai, Delhi, Bengaluru, and Kolkata, where demand for peanuts is high.
Building strong relationships with local distributors, wholesalers, and retailers will
help establish a stable customer base.
o Retail Partnerships: Partnering with regional supermarkets and health food stores to
place products on the shelves.

International Market Entry:

o Target High-Demand Export Regions: Focus on markets like the U.S., Europe, and
the Middle East where peanut consumption is high. Establish relationships with
international importers and distributors who understand local consumer preferences.
o E-commerce for International Expansion: Using e-commerce platforms like
Amazon and local food marketplaces in key export regions to sell directly to
international consumers.

Brand Awareness and Trust Building:

o Certification and Quality Assurance: Gaining certifications (e.g., ISO, HACCP)

and promoting the sustainability aspect of the business will enhance credibility and
attract international customers.
o Word-of-Mouth and Reviews: Leveraging customer feedback and reviews,
especially in online marketplaces, to build trust and grow the customer base.

24
D. Technology
1. Alternate Technologies / Processes Available, Advantages / Disadvantages, and
Cost/Benefit Analysis

Roasting Technology: Enhances flavor and shelf life but is energy-intensive. High initial
costs, but offers premium pricing in the snack market.

Cold Press Peanut Oil Extraction: Retains nutrients and flavor, appealing to health-
conscious consumers. Higher cost due to slower processing, but higher margins from
premium pricing.

Blanching: Improves color and texture for processed products like peanut butter. Energy-
consuming, but cost-effective for mass production.

Peanut Butter Processing: High market demand, but machinery is costly. Long-term profits
due to strong demand for natural peanut butter.

Precision Agriculture: Increases yield through data-driven farming but requires high
investment. Long-term gains through improved efficiency and sustainability.

2. Technical Challenges and Solutions

Quality Control: Consistency can be difficult. Solution: Automated grading and AI-based
quality monitoring.

Supply Chain: Managing logistics effectively. Solution: Blockchain for traceability and
optimized logistics.

Energy Consumption: Processing is energy-intensive. Solution: Invest in energy-efficient

machinery and renewable energy sources.

Compliance: Meeting global food safety standards. Solution: Implement integrated

management systems and regular audits.

Farmer Technology Adoption: Small-scale farmers may resist new tech. Solution: Provide
training and incentives for adopting precision agriculture.

3. Technology Commercialization/Transfer Possibility

Domestic: High potential for scaling advanced processing technologies and precision
farming. Partner with technology firms for adoption.

Global Transfer: Technology transfer from developed countries to India is feasible.

Collaborate with international firms to integrate advanced processing and agricultural
technologies locally.

25
E. Infrastructure / Utilities
1. Equipment Required, Manpower Requirements, Hiring, Training & Retention Plans,
Utilities Requirements, Other Licenses

Process Flow:

26
 Equipment:

Peanut Processing Machines: Roasting, blanching, and butter-making machines.

Cold Press Oil Extractors: For peanut oil production.

Packaging Machinery: Automated packaging lines for raw peanuts and value-added
products.

Storage Facilities: For raw peanuts, processed goods, and finished products.

 Manpower Requirements:

Production Staff: Skilled workers for machine operation, maintenance, and

packaging.

Quality Control Experts: Staff for ensuring compliance with international food
safety standards.

Sales and Marketing Team: Experts in B2B and B2C marketing, trade negotiations,
and customer relationship management.

Logistics and Distribution Team: To manage shipments, warehousing, and

inventory.

 Hiring, Training & Retention:

Hiring: Skilled workforce recruitment will focus on local talent, especially in

Junagadh and Gujarat. Collaboration with local vocational training institutes can help
in sourcing employees.

Training: Regular technical training to ensure the workforce is up-to-date with the
latest industry standards and machinery.

Retention: Offer competitive salaries, performance-based incentives, and career

growth opportunities. Implement employee well-being programs to enhance job
satisfaction.

27
  Utilities Requirements:

Water: Used for cleaning peanuts during processing.

Electricity: Required for operating machinery, including roasters, grinders, and

packaging equipment.

Fuel: Some processes like roasting may require fuel or gas.

Internet & Communication: For supply chain management, digital marketing, and
communication with international buyers.

 Other Licenses:

Food Safety & Standards Authority of India (FSSAI) Certification.

ISO & HACCP Certification for international quality compliance.

Export License for international shipments.

Environmental Clearances for energy use and waste disposal.

2. Location Advantages & Its Justification, Requirements of Infrastructure

 Location Advantages:

Proximity to Peanut Farms: Being based in Junagadh, the business benefits from
direct access to high-quality peanuts grown locally. Gujarat is one of the largest
peanut-producing states in India.

Export Accessibility: Gujarat’s well-developed ports like Mundra and Kandla offer
easy access to international markets, especially in Asia, Europe, and North America.

Skilled Workforce Availability: Availability of labor with relevant experience in

agriculture and food processing in the region, lowering operational costs.

28
 Infrastructure Requirements:

Processing Facility: Modern facilities with space for all stages of processing,
including cleaning, roasting, and packaging.

Warehousing: Large storage spaces for raw materials and finished products to ensure
smooth operations and maintain product quality.

IT Infrastructure: Cloud-based systems for inventory management, customer

relationship management (CRM), and order processing.

29
3. Exceptional Utilities/Resources Required like Water, Fuel, Electricity, Air, etc.

Water: Significant amounts will be needed for cleaning and processing peanuts. Recycling
systems may be installed to ensure sustainable water use.

Fuel: Roasting peanuts and other processes may require fuel (natural gas or LPG). A backup
fuel supply is necessary for continuous operations.

Electricity: Power is crucial for operating heavy machinery, lighting, and the cooling
systems in the warehouse.

Air: Clean, dry air is necessary to maintain the quality of peanuts during storage and
processing. Proper ventilation systems should be in place.

30
F. Finance:
1. Cost of Project

The initial investment required for setting up the business involves costs across various areas
including infrastructure, equipment, working capital, and certifications. Below is a detailed
breakdown:

Capital Cost of the Project

Detailed
Sr.No. Particulars Project Cost
Annexure
1 Land & site development: 24,00,000.00
2 Buildings 35,00,000.00
3 Plan & Machinery / 95,00,000.00
equipments
4 Infrastructure 12,00,000.00
5 Furniture 45,000.00
6 Electrical Installations 70,000.00
7 Other Assets 1,20,000.00
8 Preliminary & Preoperative 80,000.00
Expenses
8 Margin for working capital 60% 54,30,479.80

TOTAL 2,23,45,479.80

2. Means of Finance

The financing for this project will be sourced from a combination of equity capital, loans, and
possible government grants. Here’s the financing breakdown:

Means of Finance
Sr.No. Source Amount % of total
1 Own / Family savings 1,34,07,287.88 60%

2 Term Loans from Banks 44,69,095.00 20%

3 Borrowings from friends / relatives 22,34,548.00 10%

4 Trade deposits / Advances 0.00 0%

5 Other sources 0.00 0%

6 Subsidy 22,34,548.92 10%

Total 2,23,45,479.80 100%

31
G. Risks Involved

1. Technology Risks:

Risk: Challenges with adopting new technology may cause production delays.

Mitigation: Regular upgrades, preventive maintenance, and staff training.

2. Market Dynamics Risks:

Risk: Shifts in consumer preferences or oversupply can affect prices.

Mitigation: Diversify product offerings and conduct market research.

3. Financial & Currency Risks:

Risk: Currency fluctuations affect export profits.

Mitigation: Use hedging strategies and diversify payment channels.

4. Raw Material & Price Volatility:

Risk: Price fluctuations and supply chain disruptions.

Mitigation: Secure long-term contracts and maintain inventory buffers.

5. Manpower Retention:

Risk: Difficulty in retaining skilled labor.

Mitigation: Competitive pay, training, and employee incentives.

6. Government Policy Risks:

Risk: Regulatory changes could disrupt operations.

Mitigation: Stay updated on regulations, ensure compliance, and have contingency plans.

32
H. Implementation

1. Time Required to Implement:

The complete implementation timeline is estimated at 6-9 months.

Months 1-2: Land acquisition, legal formalities, and infrastructure setup.

Months 3-5: Installation of equipment, warehouse setup, and certification processes.

Months 6-7: Initial raw material procurement, hiring, and training staff.

Months 8-9: Production trials, marketing campaign launch, and export logistics setup.

2. Critical Areas/Hurdles in Implementation:

Regulatory Approvals & Certifications: Acquiring certifications (ISO, HACCP)

and government approvals may delay progress.

Supply Chain Setup: Establishing reliable supply chain links with farmers, vendors,
and exporters could face logistical challenges.

Skilled Workforce: Recruiting and training the right manpower, especially for
technical operations, may take time.

Technology Integration: Implementing advanced machinery and ensuring smooth

tech integration might encounter initial technical issues.

Market Penetration: Gaining trust and visibility in international markets and

developing an effective export strategy might require time and marketing efforts.

33
I. Key Success Factors & Challenges
1. SWOT Analysis:

Strengths:

 Large-scale peanut production in Junagadh, India, with a steady supply chain.

 High-quality peanuts and value-added products, catering to both domestic and
international markets.
 Strategic location for export to key global markets (North America, Europe,
Middle East).
 Competitive pricing and premium quality offerings.

Weaknesses:

 Limited brand recognition in international markets initially.

 Dependence on agricultural output, which may fluctuate based on weather
conditions.
 High dependency on raw material price fluctuations and international demand.

Opportunities:

 Increasing demand for plant-based protein and healthy snacks globally.

 Expansion into emerging markets (Southeast Asia, Africa).
 Growth in e-commerce and direct-to-consumer sales for peanut products.

Threats:

 Intense competition from established players like Olam, ADM, and regional
exporters.
 Risks associated with changing government policies and regulations on
exports.
 Currency fluctuations and trade barriers in global markets.

34
2. Key Success Factors:

Quality & Sustainability: Ensuring high-quality, eco-friendly, and sustainably sourced

peanuts to meet global market demands.

Effective Export Network: Establishing a robust logistics and export network for
efficient delivery to international markets.

Brand Recognition: Building a strong brand identity to differentiate from competitors

and attract consumers globally.

Adaptability to Market Trends: Responding to growing consumer preference for

healthy, plant-based snacks and organic products.

Customer Relationships: Building long-term relationships with food manufacturers,

wholesalers, and retailers.

3. Key Challenges and Proposed Action Plan:

Challenge: Limited brand recognition in international markets.

 Action Plan: Invest in marketing, digital campaigns, and participate in

international food expos to build brand awareness.

Challenge: Fluctuating raw material prices and dependency on agricultural production.

 Action Plan: Develop strong relationships with local farmers, invest in supply
chain resilience, and use forward contracts to stabilize pricing.

Challenge: High competition from established global players.

 Action Plan: Focus on quality differentiation, promote value-added products,

and build direct-to-consumer sales channels via e-commerce.

Challenge: Navigating regulatory hurdles and trade policies.

 Action Plan: Stay updated on trade policies, build relationships with export
promotion agencies, and ensure compliance with international standards and
certifications.

Challenge: Scaling production capacity while maintaining quality.

 Action Plan: Invest in advanced processing technology, monitor quality

control rigorously, and hire skilled labor for effective production.

35
J. Data Sources / References
1. Websites Visited and Data Retrieved:

1. India Brand Equity Foundation (IBEF)

Website: www.ibef.org
Data: Export data, trends in the Indian peanut industry, market research, and export
destinations.

FAO (Food and Agriculture Organization of the United Nations)

Website: www.fao.org
Data: Global peanut production and trade statistics, industry growth forecasts.

International Peanut Board (IPB)

Website: www.peanutsusa.com
Data: Global market insights, competitor analysis, and market demand forecasts for peanuts
and peanut products.

World Health Organization (WHO)

Website: www.who.int
Data: Reports on plant-based protein consumption trends, health benefits of peanuts.

2. Assistance Sought from Friends, Relatives, Guides & Mentors:

Dr. Bhavesh Tavethia (Professor at Junagadh Agricultural University)

Assistance: Provided industry insights and helped establish connections with local suppliers
and processors in Junagadh.

Dr. Sheetal Thomas (Mentor)

Assistance: Provided insights on feasibility analysis, market trends, and operational strategies
for businesses.

Mr. Shiv Kothari (Mentor)

Assistance: Assisted with the technical and regulatory aspects of setup and business structure.

36
K. Annexures

1. Promoter Biodata

 Name: Dhruv Tavethiya

 Address: Junagadh, Gujarat
 Age: 25
 Qualification: B.Tech (Civil Engineering)

Projected Financial Statements

2. Profitability

Profitability
Sr.No. Particulars INR Rounded off to None % of Sales
Year-1 Year-2 Year-3 Year-4 Year-5 in Year-1
A) Gross Revenue (Sales) 5,03,72,270.75 5,33,35,345.50 5,62,98,420.25 5,62,98,420.25 5,62,98,420.25 1.00
Less: Variable Expenses
1 Raw Materials 3,18,75,000.00 3,37,50,000.00 3,56,25,000.00 3,56,25,000.00 3,56,25,000.00 0.63
2 Consumables - - - - - -
3 Utilities 4,01,520.00 4,25,138.82 4,48,757.65 4,48,757.65 4,48,757.65 0.01
4 Packing Materials 15,00,000.00 15,00,000.00 18,00,000.00 18,00,000.00 18,00,000.00 0.03
5 Direct Labour cost 19,80,000.00 19,80,000.00 30,60,000.00 30,60,000.00 30,60,000.00 0.04
Variable Marketing Expenses like
6 commission on sales per year -
Variable Logistics/ payment Gateway
7 charges etc per year -
8 Variable expenses - 3 per year -
9 Variable expenses - 4 per year -
Total Variable cost 3,57,56,520.00 3,76,55,138.82 4,09,33,757.65 4,09,33,757.65 4,09,33,757.65 0.71

B) Contribution (Amount) 1,46,15,750.75 1,56,80,206.68 1,53,64,662.60 1,53,64,662.60 1,53,64,662.60 0.29

Contribution (%) 0.29 0.29 0.27 0.27 0.27 0.00

Less: Fixed Overheads

Sales & Marketing Overheads 6,00,000.00 6,00,000.00 11,04,000.00 11,04,000.00 11,04,000.00 0.01
Administrative/other Overheads 12,96,000.00 12,96,000.00 16,74,000.00 17,28,000.00 17,64,000.00 0.03
Preliminary Expenses Written off 8,000.00 8,000.00 8,000.00 8,000.00 8,000.00 0.00
Total overheads 19,04,000.00 19,04,000.00 27,86,000.00 28,40,000.00 28,76,000.00 0.04
C) Profit before Interest, Depreciation &
Tax (PBIDT/EBIDT) 1,27,11,750.75 1,37,76,206.68 1,25,78,662.60 1,25,24,662.60 1,24,88,662.60 0.25
Interest on Term Loans @ 10.00% 4,46,909.50 4,02,218.55 3,57,527.60 3,12,836.65 2,68,145.70 0.01
Interest on other borrowings @ 10.00% 2,23,454.80 2,01,109.32 1,56,418.36 1,11,727.40 67,036.44 0.00
Interest on working capital borrowings
@ 11.00% 3,98,235.19 4,21,250.12 4,47,499.05 4,47,697.05 4,47,829.05 0.01
Total interest cost 10,68,599.49 10,24,577.99 9,61,445.01 8,72,261.10 7,83,011.19 0.02
Depreciation 6,73,825.00 6,78,725.00 6,78,725.00 6,78,725.00 6,78,725.00 0.01
D) Profit before Tax (PBT) 1,09,69,326.26 1,20,72,903.69 1,09,38,492.59 1,09,73,676.50 1,10,26,926.41 0.22
Income tax (Verify & change applicable Please
tax rates in Assumption Sheet) check
rates 19,93,865.25 22,14,580.74 19,87,698.52 19,94,735.30 20,05,385.28 0.04
Profit after tax (PAT) 89,75,461.01 98,58,322.95 89,50,794.07 89,78,941.20 90,21,541.13 0.18
Proposed Dividend rate (%) 0.00% 2.00% 4.00% 6.00% 6.00%
Proposed Dividend Amount - 2,68,145.76 5,36,291.52 8,04,437.27 8,04,437.27
Proposed Dividend Dist. Tax @ 10% - 26,814.58 53,629.15 80,443.73 80,443.73
Total outgo on Dividend - 2,94,960.33 5,89,920.67 8,84,881.00 8,84,881.00
Retained earnings 89,75,461.01 95,63,362.62 83,60,873.41 80,94,060.20 81,36,660.13

37
 3. Cash Flow Statement

Cash Flow Projections : INR Rounded off to None

Particulars Project period Year-1 Year-2 Year-3 Year-4 Year-5
Inflows
Cash Profit before interest, depreciation & tax 1,27,19,750.75 1,37,84,206.68 1,25,86,662.60 1,25,32,662.60 1,24,96,662.60

Subsidy / Cash grants 22,34,548.92

Incentives / benefits not accounted for
Increase in borrowings:
a) term loans 44,69,095.00 - - - - -
b) working capital 36,20,319.87 2,09,226.66 2,38,626.66 1,800.00 1,200.00
c) other borrowings 22,34,548.00
Increase in sundry creditors - 29,68,279.00 1,58,019.10 2,56,176.63 4,500.00 3,000.00
Sale / disposal of fixed assets
Other income/cash accruals
Promoter's contributions 1,34,07,287.88 - - - - -
sub-total of Inflows 2,23,45,479.80 1,93,08,349.61 1,41,51,452.43 1,30,81,465.89 1,25,38,962.60 1,25,00,862.60

Outflows
Payment of interest:
a) on term loans 4,46,909.50 4,02,218.55 3,57,527.60 3,12,836.65 2,68,145.70
b) on working capital 3,98,235.19 4,21,250.12 4,47,499.05 4,47,697.05 4,47,829.05
c) on other borrowings 2,23,454.80 2,01,109.32 1,56,418.36 1,11,727.40 67,036.44
Payment of income tax 19,93,865.25 22,14,580.74 19,87,698.52 19,94,735.30 20,05,385.28
Payment of dividend - 2,68,145.76 5,36,291.52 8,04,437.27 8,04,437.27
Payment of dividend distribution tax - 26,814.58 53,629.15 80,443.73 80,443.73
Repayment of /reduction in borrowings
a) term loans 4,46,909.50 4,46,909.50 4,46,909.50 4,46,909.50 4,46,909.50
b) working capital
c) other borrowings 2,23,454.80 4,46,909.60 4,46,909.60 4,46,909.60 4,46,909.60
Increase in Inventory 74,94,638.69 4,33,608.88 4,58,266.42 - -
Increase in Sundry Debtors 41,40,186.64 2,43,540.39 2,43,540.39 - -
Investment in new fixed assets / projects 1,69,15,000.00 - - - - -
Withdrawals from business

sub-total of outflow 1,69,15,000.00 1,53,67,654.36 51,05,087.44 51,34,690.11 46,45,696.50 45,67,096.57

Summary
Opening balance - 54,30,479.80 93,71,175.05 1,84,17,540.05 2,63,64,315.83 3,42,57,581.94
Add: Inflows 2,23,45,479.80 1,93,08,349.61 1,41,51,452.43 1,30,81,465.89 1,25,38,962.60 1,25,00,862.60
Less: Outflows 1,69,15,000.00 1,53,67,654.36 51,05,087.44 51,34,690.11 46,45,696.50 45,67,096.57
Closing balance 54,30,479.80 93,71,175.05 1,84,17,540.05 2,63,64,315.83 3,42,57,581.94 4,21,91,347.97

38
 4. Projected Balance Sheet

Projected Balance Sheet : INR Rounded off to None

Sr.No. Particulars Project period Year-1 Year-2 Year-3 Year-4 Year-5
Sources of funds
1 Share capital / Promoter's capital 1,34,07,287.88 1,34,07,287.88 1,34,07,287.88 1,34,07,287.88 1,34,07,287.88 1,34,07,287.88
2 Reserves & Surplus:
Opening balance 22,34,548.92 1,12,10,009.93 2,07,73,372.55 2,91,34,245.96 3,72,28,306.16
Additions/Profit/Loss during the year 22,34,548.92 89,75,461.01 95,63,362.62 83,60,873.41 80,94,060.20 81,36,660.13
Used during the year - - - - -
Closing balance 22,34,548.92 1,12,10,009.93 2,07,73,372.55 2,91,34,245.96 3,72,28,306.16 4,53,64,966.29
3 Secured Loans:
Term Loans: Opening balance - 44,69,095.00 40,22,185.50 35,75,276.00 31,28,366.50 26,81,457.00
Additions during the year 44,69,095.00 - - - - -
Repaid during the year - 4,46,909.50 4,46,909.50 4,46,909.50 4,46,909.50 4,46,909.50
Closing balance 44,69,095.00 40,22,185.50 35,75,276.00 31,28,366.50 26,81,457.00 22,34,547.50

Working Capital: Opening Balance - - 36,20,319.87 38,29,546.53 40,68,173.18 40,69,973.18

Additions during the year: WC - 36,20,319.87 2,09,226.66 2,38,626.66 1,800.00 1,200.00
Repaid during the year - - - - - -
Closing balance - 36,20,319.87 38,29,546.53 40,68,173.18 40,69,973.18 40,71,173.18
4 Unsecured Loans:
Opening balance - 22,34,548.00 20,11,093.20 15,64,183.60 11,17,274.00 6,70,364.40
Additions during the year 22,34,548.00 - - - - -
Repaid during the year - 2,23,454.80 4,46,909.60 4,46,909.60 4,46,909.60 4,46,909.60
Closing balance 22,34,548.00 20,11,093.20 15,64,183.60 11,17,274.00 6,70,364.40 2,23,454.80

Total 2,23,45,479.80 3,42,70,896.38 4,31,49,666.56 5,08,55,347.52 5,80,57,388.62 6,53,01,429.66

Applications of funds
1 Fixed Assets:
Opening Gross Block - 1,68,35,000.00 1,61,61,175.00 1,54,82,450.00 1,48,03,725.00 1,41,25,000.00
Additions during the year 1,68,35,000.00 - - - - -
Less: Depreciation during the year - 6,73,825.00 6,78,725.00 6,78,725.00 6,78,725.00 6,78,725.00
Less: Sale/scrap during the year - - - - - -
Net Block 1,68,35,000.00 1,61,61,175.00 1,54,82,450.00 1,48,03,725.00 1,41,25,000.00 1,34,46,275.00
2 Current Asssets:
Inventories 74,94,638.69 79,28,247.58 83,86,513.99 83,86,513.99 83,86,513.99
Cash & Bank Balance 54,30,479.80 93,71,175.05 1,84,17,540.05 2,63,64,315.83 3,42,57,581.94 4,21,91,347.97
Sundry Debtors 41,40,186.64 43,83,727.03 46,27,267.42 46,27,267.42 46,27,267.42
Other current assets
Gross current assets 54,30,479.80 2,10,06,000.38 3,07,29,514.65 3,93,78,097.24 4,72,71,363.35 5,52,05,129.38
Less: Sundry Creditors - 29,68,279.00 31,26,298.09 33,82,474.72 33,86,974.72 33,89,974.72
Net Current Assets 54,30,479.80 1,80,37,721.38 2,76,03,216.56 3,59,95,622.52 4,38,84,388.62 5,18,15,154.66
3 Prelim & Preop. Expenses not written off 80,000.00 72,000.00 64,000.00 56,000.00 48,000.00 40,000.00
4 P&L Account:
Opening balance - - - - - -
Additions during the year
Closing balance - - - - - -

Total 2,23,45,479.80 3,42,70,896.38 4,31,49,666.56 5,08,55,347.52 5,80,57,388.62 6,53,01,429.66

39
 5. Proposed Organization Chart and Annual Manpower Costs Organization chart
Manpower required / Employment Generated
Monthly salary per
Sr.No. Category Position Number of employees Annual Wage Bill rounded off to None
employee in
INR Year-1 Year-2 Year-3 Year-4 Year-5 Year-1 Year-2 Year-3 Year-4 Year-5
(A) Fixed cost manpower (irrespective of level of activity)
1 Marketing function Marketing Manager 35,000 1 1 2 2 2 4,20,000.00 4,20,000.00 8,40,000.00 8,40,000.00 8,40,000.00
sub-total of marketing function 4,20,000.00 4,20,000.00 8,40,000.00 8,40,000.00 8,40,000.00
2 Administrative Supervisor - Operations 25,000 2 2 3 3 3 6,00,000.00 6,00,000.00 9,00,000.00 9,00,000.00 9,00,000.00
Function
Accountant 20,000 1 1 1 1 1 2,40,000.00 2,40,000.00 2,40,000.00 2,40,000.00 2,40,000.00

3 Other functions Guard 7,000 2 2 2 2 2 1,68,000.00 1,68,000.00 1,68,000.00 1,68,000.00 1,68,000.00

sub-total of Admin & other functions 10,08,000.00 10,08,000.00 13,08,000.00 13,08,000.00 13,08,000.00
Sub-total of fixed cost manpower 14,28,000.00 14,28,000.00 21,48,000.00 21,48,000.00 21,48,000.00
(B) Variable cost manpower (varies with level of activity)
4 Production function Operators / workers - - - - -

Unskilled Labours 12,000 10 10 15 15 15 14,40,000.00 14,40,000.00 21,60,000.00 21,60,000.00 21,60,000.00

Skilled Labour 15,000 3 3 5 5 5 5,40,000.00 5,40,000.00 9,00,000.00 9,00,000.00 9,00,000.00

Sub-total of variable cost manpower 19,80,000.00 19,80,000.00 30,60,000.00 30,60,000.00 30,60,000.00
TOTAL SALARY/WAGES COST 19 19 28 28 28 34,08,000.00 34,08,000.00 52,08,000.00 52,08,000.00 52,08,000.00

6. Working Capital Calculaion

Working capital assessment

Sr.No. Particulars Norm Amount
Year-1 Year-2 Year-3 Year-4 Year-5
UOM Value

1 Raw Materials No. of days consumption 30 26,19,863.01 27,73,972.60 29,28,082.19 29,28,082.19 29,28,082.19
2 Consumables No. of days consumption 30 - - - - -
3 Packing Materials No. of days consumption 30 1,23,287.67 1,23,287.67 1,47,945.21 1,47,945.21 1,47,945.21
4 Work in Process: No. of days production 7 6,11,301.37 6,47,260.27 6,83,219.18 6,83,219.18 6,83,219.18
5 Finished goods No. of days production 30 41,40,186.64 43,83,727.03 46,27,267.42 46,27,267.42 46,27,267.42
4 Receivables No. of days Sales 30 41,40,186.64 43,83,727.03 46,27,267.42 46,27,267.42 46,27,267.42
5 Utilities 1 month's expenses 1 33,460.00 35,428.24 37,396.47 37,396.47 37,396.47
6 Overheads 1 month's expenses 1 1,58,666.67 1,58,666.67 2,32,166.67 2,36,666.67 2,39,666.67
sub-total 1,18,26,952.00 1,25,06,069.50 1,32,83,344.55 1,32,87,844.55 1,32,90,844.55

Less: Creditors No. of days purchases 30 27,76,152.33 29,32,203.19 31,12,911.59 31,12,911.59 31,12,911.59

Net working capital required 90,50,799.67 95,73,866.31 1,01,70,432.96 1,01,74,932.96 1,01,77,932.96

40
 7. Depreciation Calculations
Additions during subsequent years Depreciation
Detailed
Sr.No. Particulars Project Cost Deprecia-
Annexure Year-1 Year-2 Year-3 Year-4 Year-5 Year-1 Year-2 Year-3 Year-4 Year-5
tion %
1 Land & site development: 24,00,000.00 0.00% - - - - -
2 Buildings 35,00,000.00 3.00% 1,05,000.00 1,05,000.00 1,05,000.00 1,05,000.00 1,05,000.00
3 Plan & Machinery / 95,00,000.00 4,75,000.00 4,75,000.00 4,75,000.00 4,75,000.00 4,75,000.00
equipments 5.00%
4 Infrastructure 12,00,000.00 7.00% 84,000.00 84,000.00 84,000.00 84,000.00 84,000.00
5 Furniture 45,000.00 8.50% 3,825.00 3,825.00 3,825.00 3,825.00 3,825.00
6 Electrical Installations 70,000.00 7.00% - 4,900.00 4,900.00 4,900.00 4,900.00
7 Other Assets 1,20,000.00 5.00% 6,000.00 6,000.00 6,000.00 6,000.00 6,000.00
8 Preliminary & Preoperative 80,000.00
Expenses
8 Margin for working capital 60% 54,30,479.80

TOTAL 2,23,45,479.80 0.00 0.00 0.00 0.00 0.00 6,73,825.00 6,78,725.00 6,78,725.00 6,78,725.00 6,78,725.00

8. Loan Repayments

Loan Repayments : INR Rounded off to None

Sr.No. Particulars Project Year-1 Year-2 Year-3 Year-4 Year-5
period
(A) Term Loans: Opening balance - 44,69,095.00 40,22,185.50 35,75,276.00 31,28,366.50 26,81,457.00
Additions during the year 44,69,095.00 - - - - -
Repaid during the year - 4,46,909.50 4,46,909.50 4,46,909.50 4,46,909.50 4,46,909.50
Closing balance 44,69,095.00 40,22,185.50 35,75,276.00 31,28,366.50 26,81,457.00 22,34,547.50

(B) Working Capital: Opening Balance - - 36,20,319.87 38,29,546.53 40,68,173.18 40,69,973.18

Additions during the year: WC - 36,20,319.87 2,09,226.66 2,38,626.66 1,800.00 1,200.00
Repaid during the year - - - - - -
Closing balance - 36,20,319.87 38,29,546.53 40,68,173.18 40,69,973.18 40,71,173.18
(C) Unsecured Loans:
Opening balance - 22,34,548.00 20,11,093.20 15,64,183.60 11,17,274.00 6,70,364.40
Additions during the year 22,34,548.00 - - - - -
Repaid during the year - 2,23,454.80 4,46,909.60 4,46,909.60 4,46,909.60 4,46,909.60
Closing balance 22,34,548.00 20,11,093.20 15,64,183.60 11,17,274.00 6,70,364.40 2,23,454.80

41
 9. Sales Projections
Sales Projections / Capacity Utilization during first 5 years
Margin % on Sale Annual
Sr.No. Product name / Service Description Unit of Quantity sold Sales Revenue rounded off to None
Unit Rate in Price in case of
Production / Sale Proposed capacity utilization as % of installed capacity
Measurement Retailing business
(leave blank for quantity at
INR manufacturing Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
business)
maximum
capacity level

85% 90% 95% 95% 95%

1 Peanuts - Grade A (60%) Kilogram 140 3,30,750 2,81,138 2,97,675 3,14,213 3,14,213 3,14,213 3,93,59,250.00 4,16,74,500.00 4,39,89,750.00 4,39,89,750.00 4,39,89,750.00
85% 90% 95% 95% 95%
2 Peanuts - Grade B (30%) Kilogram 70 1,65,375 1,40,569 1,48,838 1,57,106 1,57,106 1,57,106 98,39,812.50 1,04,18,625.00 1,09,97,437.50 1,09,97,437.50 1,09,97,437.50
85% 90% 95% 95% 95%
3 Peanuts - Grade C (8%) Kilogram 30 44,099 37,484 39,689 41,894 41,894 41,894 11,24,524.50 11,90,673.00 12,56,821.50 12,56,821.50 12,56,821.50
85% 90% 95% 95% 95%
4 Skin (2%) Kilogram 5 11,455 9,737 10,310 10,882 10,882 10,882 48,683.75 51,547.50 54,411.25 54,411.25 54,411.25

Gross Revenue 5,03,72,270.75 5,33,35,345.50 5,62,98,420.25 5,62,98,420.25 5,62,98,420.25

10.Overheads
Overheads
Sr.No. Particulars Basis of calculation or assumption Monthly expenditure in INR Annual expenditure rounded off to None
During Yr-1 During Yr-2 During Yr-3 During Yr-4 During Yr-5 Year-1 Year-2 Year-3 Year-4 Year-5
(A) Sales & Marketing Overheads
1 Salary of Sales/Marketing personnel 4,20,000.00 4,20,000.00 8,40,000.00 8,40,000.00 8,40,000.00
2 Advertisement & Publicity 10,000 10,000 15,000 15,000 15,000 1,20,000.00 1,20,000.00 1,80,000.00 1,80,000.00 1,80,000.00
3 Travelling of marketing team 5,000 5,000 7,000 7,000 7,000 60,000.00 60,000.00 84,000.00 84,000.00 84,000.00
Sub-total of Marketing overheads 6,00,000.00 6,00,000.00 11,04,000.00 11,04,000.00 11,04,000.00
(B) Administrative Overheads
1 Salary of Administrative & misc. 10,08,000.00 10,08,000.00 13,08,000.00 13,08,000.00 13,08,000.00
personnel
2 Rent - - - - -
3 Building repairs & Maintenance 10,000 10,000 12,000 15,000 18,000 1,20,000.00 1,20,000.00 1,44,000.00 1,80,000.00 2,16,000.00
4 Telecommunications 1,000 1,000 1,500 2,000 2,000 12,000.00 12,000.00 18,000.00 24,000.00 24,000.00
6 Other expenses (specify major) Audit 5,000 5,000 7,000 8,000 8,000 60,000.00 60,000.00 84,000.00 96,000.00 96,000.00
Sub-total of Administrative 12,00,000.00 12,00,000.00 15,54,000.00 16,08,000.00 16,44,000.00
overheads
TOTAL OVERHEADS 18,00,000.00 18,00,000.00 26,58,000.00 27,12,000.00 27,48,000.00

11.Raw Materials
Important Raw Material and other Inputs
Proposed supplier's name &
Sr.No. Particulars UOM Rate in Annual requirements (Quantity) Value rounded off to None
location
INR Year-1 Year-2 Year-3 Year-4 Year-5 Year-1 Year-2 Year-3 Year-4 Year-5
1 Raw Materials
a) Ground Nut Farmers/Mandis Kilogram 50 6,37,500 6,75,000 7,12,500 7,12,500 7,12,500 3,18,75,000.00 3,37,50,000.00 3,56,25,000.00 3,56,25,000.00 3,56,25,000.00
Sub-total 3,18,75,000.00 3,37,50,000.00 3,56,25,000.00 3,56,25,000.00 3,56,25,000.00

42
 12. Means of Finance

Means of Finance
Sr.No. Source Amount % of
total
1 Own / Family savings 1,34,07,287.88 60%

2 Term Loans from Banks 44,69,095.00 20%

3 Borrowings from friends / relatives 22,34,548.00 10%

4 Trade deposits / Advances 0.00 0%

5 Other sources 0.00 0%

6 Subsidy 22,34,548.92 10%

Total 2,23,45,479.80 100%

13. Break Even Analysis

Break-Even Analysis
Sr.No. Particulars Value
Year-1 Year-2 Year-3 Year-4 Year-5
1 Sales Realization 5,03,72,270.75 5,33,35,345.50 5,62,98,420.25 5,62,98,420.25 5,62,98,420.25
2 Variable costs 3,57,56,520.00 3,76,55,138.82 4,09,33,757.65 4,09,33,757.65 4,09,33,757.65
3 Fixed costs incl. interest but excluding 29,64,599.49 29,20,577.99 37,39,445.01 37,04,261.10 36,51,011.19
depreciation & prelim exp w/off
4 Fixed costs incl depreciation & prelim exp w/off 36,46,424.49 36,07,302.99 44,26,170.01 43,90,986.10 43,37,736.19
5 Cash BEP as % of planned capacity utilization 20.28% 18.63% 24.34% 24.11% 23.76%
6 Total BEP as % of planned capacity utilization 25% 23% 29% 29% 28%

14. Debt Equity Ratio

Calculations of Debt Equity Ratio

Sr.No. Particulars Project Period Year-1 Year-2 Year-3 Year-4 Year-5
1 Total Long Term Debt (A) 67,03,643.00 60,33,278.70 51,39,459.60 42,45,640.50 33,51,821.40 24,58,002.30
2 Equity & Reserves (B) 1,56,41,836.80 2,46,17,297.81 3,41,80,660.43 4,25,41,533.84 5,06,35,594.04 5,87,72,254.17

3 Debt Equity Ratio (A) / (B) 0.43 0.25 0.15 0.10 0.07 0.04

43
15. Payback Period

Payback Period calculations based on activity

level of 3rd year

Sr.No. Particulars Value

1 Capital Investment 22345479.80

2 Net Profit before tax of 3rd year 10938493
3 Add: Depreciation & prelim exp w/off 6,86,725
4 Cash profit 11625218
5 Payback period = COP/Cash profit 1.92 years or
23 Months

16. IRR Calculation

Calculations of Internal Rate of

Return
Net Discounting Discounted cash
Inflow/outflow factor flows
Year (Cash Profit -
Capital
Expenditure)
0 -2,23,45,479.80 1.00 -2,23,45,479.80
1 1,16,51,151.26 0.66 77,01,251.70
2 1,27,59,628.69 0.44 55,74,719.11
3 1,16,25,217.59 0.29 33,57,210.10
4 1,16,60,401.50 0.19 22,25,786.03
5 1,17,13,651.41 0.13 14,77,932.77
6 1,05,42,286.27 0.08 8,79,204.02
7 94,88,057.64 0.06 5,23,027.65
8 85,39,251.88 0.04 3,11,142.72
9 76,85,326.69 0.02 1,85,094.97
10 69,16,794.02 0.02 1,10,110.72

IRR = 51.29% -0.00

44
 17. Debt Service Coverage Ratio

Calculations of Debt Service Coverage Ratio & Interest Coverage Ratio

Sr.No. Particulars Year-1 Year-2 Year-3 Year-4 Year-5
1 Profit before Interest, Depreciation & Tax 1,27,11,750.75 1,37,76,206.68 1,25,78,662.60 1,25,24,662.60 1,24,88,662.60
2 Less : Interest on Working Capital 3,98,235.19 4,21,250.12 4,47,499.05 4,47,697.05 4,47,829.05
3 Value(A) 1,23,13,515.56 1,33,54,956.56 1,21,31,163.55 1,20,76,965.55 1,20,40,833.55
4 Interest on TL & Other borrowings except working 6,70,364.30 6,03,327.87 5,13,945.96 4,24,564.05 3,35,182.14
capital (B)
5 Repayment of TL & Other borrowings except 6,70,364.30 8,93,819.10 8,93,819.10 8,93,819.10 8,93,819.10
working capital (C)

6 DSCR = (A) / (B+C) 9.18 8.92 8.62 9.16 9.80

7 Int. Coverage Ratio = (A) / (B) 18.37 22.14 23.60 28.45 35.92

18. Key Indicators of the project

Key indicators of the project

Project
Sr.No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5
period
1 Cost of project Rs.Lacs 22345479.8
2 Sales Rs.Lacs 50372270.75 53335345.50 56298420.25 56298420.25 56298420.25
3 Profit (PBT) Rs.Lacs 10969326.26 12072903.69 10938492.59 10973676.50 11026926.41
Cash Break even point as % of proposed % 20.28% 18.63% 24.34% 24.11% 23.76%
4 capacity utilization every year
Total Break even point as % of proposed % 24.95% 23.01% 28.81% 28.58% 28.23%
5 capacity utilization every year
Cash Break even point as % of full % #REF! #REF! #REF! #REF! #REF!
6 capacity
Total Break even point as % of full % #REF! #REF! #REF! #REF! #REF!
7 capacity
8 Pay back period at 3rd year's capacity Months 23
Pay back period at actual operating levels Months 22
9
10 Employment (No.) 19 19 28 28 28
11 Debt Equity Ratio at various stages 0.43 0.25 0.15 0.10 0.07 0.04
12 Debt Service Coverage Ratio 9.18 8.92 8.62 9.16 9.80
13 Interest Cover 18.37 22.14 23.60 28.45 35.92
14 Internal Rate of Return % 51.29%

45