Manufacturing Process

Flour of Bengal grain obtained from market. To this pices are added and mixed.It is then sent to kneading machine. the wet paste is passed though extruder in to thin threads which are than fried

Market
Sev is a traditional snacks food and competes with ready-to-eat foods like potato chips. it market is therefore, in snacks food and potato chips bussiness:-

Snack food market

The size of the Indian snacks food market is currently estimated at approximately US $ 300 million. Unoriganized small companies with alocalized presence dominate the snack foods market in India but in recent years the oranized branded products market size has grown signicantly. potato chips constitute the major segment among a wide range of snacks. pepsico India holdings Pvt. Ltd. with its Ruffles/lays, cheetos and Hostess brands, and Haldiram, a major Indian players dominates the market,which is estimated at around US $43 million. Major regional and local brands include S m foods with its peppy brand , Mongines Wafers, Hostage, Binnies, Fun-munch, Hello, Twinkle and Marvel. The chips market was largely dominted by many regionalized small player in the unorganised sector. The products are manufactured locally and sold in ordinary polypouches unlike the prouducts of the oranized sector that are better packaged with the much longer shelf life. According to industry sources, the market for branded chips has been growing rapidly at approximately 20% annually. some new snacks foods items that slowing increasing in popularity are savories with Mexican flavor like tortila chips, and cheesy corn puff products. Many major companies have signed up exclusive sourcing agreements with local farmers for procurements of better quality raw materials. pepsico has a contract farming arrangements with farmers in the North Indian states of Punjab for cultivation and procurement of various raw materials. A wide well-established distribution network, attrative packaging, and promotions targeted at children to increase consumption have been some of the main factor for incresing market share of leading players. Snacks foods are impulse purchase products in smaller pack sizes at a lower price. Consumer prefences and tastes vary widely across the different regions of the country.Banana chips for instance, which are very popular in the southern part of Indian do not find many takers in other parts of the country. Pentration of snacks foods is highest in North Indian as compared to the country.

With Inaian consumer preferences and tastes vary widely acoss the different regions of the country.

Demand and supply

Namkin manufacturing is primarily confined to the unorganised sector. there are some national brands like Lijjat,Leher, Haldiram etc. but their prouducts are costly and thus have limited market share. Bulk of the market is controlled by the local brands. Market for these products is growing steadily and there are not much seasonal fluctuations.

Marketing Strategy
Pricing is a critical aspect to compete with established brands and the product has to be pushed through with the help of retailers. A small delivery van is necessary. Requisite changes in the ingredients have to be made in line with regional likings. Farsan items can be sold in bulk packing of 2, 5 and 10 kgs. to the retailers who, in turn, would repack them in suitable quanties and sell. This is a standard practice in this industry as retailers from nearby centers prefers to buy them in bulk for selling in local market. The snack food projects has versatile but promising range of products to include the following: Potato chips [3-4 flavors] Fried Extruded [3-5 flavors] Wet Fried [3-4 Shapes $3 Flavors] Filled Extruded [1 Shape & 2-3 Flavors] Unfilled Extruded [2 Shapes &2-3 Flavors]
Thus the company will also manufacture many varieties of Sav, in various flvours etc. The production lines are selected with an intention to get market share from various market segments including snacks foods, biscuits & bakery products, confectionery, conventional food, ready-to-eat food, junk food French fries, etc. This means that the market segment is broad based and each will contribute into different kinds of products the company intends to launch. the project is capital intensive project, with low break-even point. fast pay-back period, broad based products options, expanding market with brand preference.

Raw material
Raw material comprises of Besan and Vegetable oil, both of which are conveniently available in local market as this is a traditional products. Spices are also easily available.

Utilities & Services

The unit will need power, thermic fluid and process water. Power is being sourced from MPEB, the fire wood from traders and water from tubewell.

Location
Project is being located on a leased plot at Maheshnager where the promoters will have convenience of management and control. The company has acquired 1 acre plot from the promoters which is sufficient for its present and future requirements.

Schedule of implementation
Care has been taken to overlap various activities so that the time requried for implementation of the project is requred; the production in new unit can can commence by Nov.2008:-