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ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my


guide SHIV SHANKAR TARAI Sir for his exemplary guidance, monitoring
and constant encouragement throughout the course of the thesis . The blessings,
help and guidance given by him time to time shall carry a long way in the
journey of life on which I am about to embark.

I also take the opportunity to express a deep sense of gratitude to my friends for
their valuable information and guidance , which helped me in completing the
task throughout the various stages .

Lastly I thank almighty, my parents, brother and friends for their constant
encouragement without which this assignment would not be possible.
DECLARATION OF THE STUDENT
I would undersigned solemnly declare that the project report “ START UP
INDIA” is based on my own work carried out during the course of our study
under the supervision of SHIV SHANKAR TARAI Sir .

I assert the statements made and conclusions drawn are an outcome of my


research work . I further certify that
I. The work contained in the report is original and has been done by me and
under the general supervision of my supervisor
II. The work has not been submitted to any other institution for any other
degree/ diploma / certificate in this university or any other University of India
or Abroad
III. We have followed the guidelines provided by the college in writing the
report
IV. Whenever we have used (data, theoretical analysis and text ) from other
sources , we have given due credit to them in the text of the report and giving
their details in the references.

Name :- TANWEER QUADRE


Roll no:- BC15-063
CONTENTS

Sl No. Particulars Page No.

1. Introduction of the Topic

2.
CHAPTER :- 1

INTRODUCTION

India is a country of many great legends who were famous all over the world
because of their works, sharp mind and high skill. However, our country is still
on the developing track because of the lack of some solid support and ways to
work in right direction. Youths in India are very talented, highly skilled and full
of innovative ideas. This scheme is a big help to them to go in right direction
using their new and innovative ideas.

What is Startup India Standup India Campaign:-


A new campaign named as Startup India, Standup India was announced by the
Prime Minister Narendra Modi during his speech on Independence Day 2015.
This is an effective scheme launched on 16th of January 2016 by the Modi
government to help youths of the country. This is an initiative by the Indian PM
to give opportunities to the youths to become industrialists and entrepreneurs
which need the establishment of a startup network. Startups means youths of the
country will be supported through finance from banks to strengthen those
startups better so that they can create more employment in India.
This programme is a big start to enable startups through financial support so
that they can use their innovative ideas in right direction. PM has also requested
to all the banks to support at least one dalit and one woman entrepreneur. This
scheme will motivate and promote new comers towards business and grow their
career and economy of the country.

A complete action plan of this scheme was launched on 16th January 2016. This
scheme will boost entrepreneurship in the country at grassroots level ensuring
youth benefits from the lowest strata of society. Youths have fresh mind, new
ways, and new thinking so they are better to support as startups. Various IITs,
NITs, central universities and IIMs of India were connected through the live
connectivity during the successful launch of campaign. The main aim of this
scheme is to promote bank financing as well as offer incentives for start-up
ventures to boost the entrepreneurship and new job creation techniques among
them.

This initiative is the necessity to lead India in right direction. The most
important point about this campaign is that it involves youths of the country as
start-ups as they have fresh mind, innovative ideas, required strength, energy,
skill, and new thinking to lead business. Youths are the energetic and highly
skilled section of the society so they are better target for this campaign.

What are the benefits of startup India initiative?


It is an action plan by PM of India to develop an ecosystem for startups to
nurture ahead. This plan is aimed at promoting bank finance and encouraging
job creation. Some of the benefits are mentioned below:

1) Tax exemption for three years and concessions on all capital gains

2) Self-certification and no inspection by regulatory for 3 years

3) 10,000 crore of Special Fund to help StartUp Fund

4) 75 Startup India Hub will be created to interact with government agencies.


This will be created in National Institutes of Technology (NITs), the Indian
Institutes of Information Technology (IIITs), the Indian Institutes of Science
Education and Research (IISERs) and National Institutes of Pharmaceutical
Education and Research (NIPERs).
5) Atal Innovation Mission (AIM) will be launched for research and
development

6) 80 percent reduction in patent filing fee

7) Mobile App to register startups and one form filing

11 Process to Start Up By Indian Government:-

Startups are becoming very popular in India. The government under the
leadership of PM Narendra Modi has started and promoted Startup India.
To promote growth and help Indian economy, many benefits are being given to
entrepreneurs establishing start-ups :-

1. Simple process

Government of India has launched a mobile app and a website for easy
registration for startups. Anyone interested in setting up a startup can fill up
a simple form on the website and upload certain documents. The entire process
is completely online.

2. Reduction in cost

The government also provides lists of facilitators of patents and trademarks.


They will provide high quality Intellectual Property Right Services including
fast examination of patents at lower fees. The government will bear all
facilitator fees and the startup will bear only the statutory fees. They will enjoy
80% reduction in cost of filing patents.
3. Easy access to Funds

A 10,000 crore rupees fund is set-up by government to provide funds to the


startups as venture capital. The government is also giving guarantee to the
lenders to encourage banks and other financial institutions for providing venture
capital.

4. Tax holiday for 3 Years

Startups will be exempted from income tax for 3 years provided they get a
certification from Inter-Ministerial Board (IMB).

5. Apply for tenders

Startups can apply for government tenders. They are exempted from the
“prior experience/turnover” criteria applicable for normal companies answering
to government tenders.

6. R&D facilities

Seven new Research Parks will be set up to provide facilities to startups in the
R&D sector

7. No time-consuming compliances

Various compliances have been simplified for startups to save time and money.
Startups shall be allowed to self-certify compliance (through the Startup mobile
app) with 9 labour and 3 environment laws (for list of white industries which
are eligible under self-compliance .

8. Tax saving for investors

People investing their capital gains in the venture funds setup by government
will get exemption from capital gains. This will help startups to attract more
investors.

9. Choose your investor


After this plan, the startups will have an option to choose between the VCs,
giving them the liberty to choose their investors.

10. Easy exit

In case of exit – A startup can close its business within 90 days from the date of
application of winding up.

11. Meet other entrepreneurs

Government has proposed to hold 2 startup fests annually both nationally and
internationally to enable the various stakeholders of a startup to meet. This will
provide huge networking opportunities.

Startups are being highly encouraged by the government. The benefits enjoyed
by them are immense, which is why more people are setting up startups. If you
are one of them, ClearTax can help you on your way.

PM Modi first spoke of his idea during the Independence Day Speech At Red
Fort Earlier This Year And Mandated The Department of Industrial Policy and
Promotion (DIPP) to begin dialogue with various stakeholders and prepare the
policy framework to drive the initiative.
In his last address to the nation on ‘Mann ki Baat’, his Radio talk show, Modi
re-iterated his government’s intention to give impetus to the innovative and
creative spirit amongst young India and build a government supported eco-
system to harness this potential.

The Start-up India, Stand-up India Government Plan


As per the latest NASSCOM Start-up Report 2015, start-ups created 65,000 new
jobs in 2014 and by 2020, the number is expected to touch 2,50,000. That’s an ambitious plan
and as of now, driven almost entirely by private sector initiative. If PM Modi succeeds in
establishing a pro-active start-up eco-system as intentioned, then the potential for new job
creation will be far greater than NASSCOM’s projections.
for investments and of late, has discovered India’s potential for innovation and creativity.
The last three years has seen significant scale up in international investments in start-ups and
this has led to skyrocketing valuations, exceeding $ 1 billion in some cases, a phenomena that
would have been unbelievable just five years ago. And this has been achieved with little or no
support from the government.
PM Modi rightly recognizes this fact and understands that this is the right time to bring in the
government to define a conducive policy framework, backed by necessary financial and tax
incentives, and nurture the creative and innovative potential of the youth. He also sees the
downstream benefits of job creation in smaller towns and villages.

Towards this, the government plans to form a secretary level inter-ministerial panel
comprising representatives from various ministries like biotechnology, science & technology,
information technology etc, which will work in coordination with DIPP to evaluate proposals
based on innovation and commercial potential.
Furthermore, the government plans to connect the youth, through IT access, with knowledge
base and mentorship available from academic institutional network including IITs, IIMs,
NITs and leading central universities, who will extend help to these potential entrepreneurs
across India.
The panel will act as a guide to ensure that the potential entrepreneur is able to set-up his
business without too much red tape and is able to access finance on easy terms to launch his
business.

Potential spoilers to Start-up India; Stand-up India


As with any central government initiative, the success of a programme lies in its ability to
percolate its benefits to the intended beneficiaries. In this case, the government will have to
address all issues not just at the policy level, but ensure its implementation at the grassroots
i.e. the Tier II, Tier III towns and subsequently at the village level.
The Problem Areas:
 The absence of specific start-up laws and lack of exit options.
 Tough compliance laws that were framed keeping in mind traditional businesses have to
be done away with in the case of start-ups and new laws have to be framed keeping in
mind new-age businesses and its rapidly evolving technology.
 Start-up funding is based on risk taking and ability to understand the application and
commercial potential of the proposed business. Lack of dedicated start-up capital funding
without guarantors or collateral is a major hurdle today. Furthermore, the lack of risk
taking ability by public sector banks is mainly on account of restrictions based on current
laws. These need to be changed and banks given the freedom to fund a proposal once it
has been approved by an expert panel, either within the bank or by a competent and
approved outside agency.
 Most start-ups fail either due to lack of market acceptance, market entry timing, lack of
suitable mentoring, or simply lack of adequate funding. Whatever the case, the ratio of
failures compared to success is skewed. Almost all successful entrepreneurs have tasted
several failures before hitting a jackpot. Therefore, the government must factor in failure
and ensure that an entrepreneur is not penalized for failing, but is encouraged to try again.
 Once a proposal is vetted and approved, easy funding on favourable terms must be made
available based on the capital required to initiate the business and expand as per
projections.
 Lack of government-sponsored physical incubators with the latest technology backbone is
important for an ecosystem to develop. This along with mentors and subject matter experts
that can assist first time entrepreneurs to handle the required paper work for establishing
the business and guide the business to the next level of funding is essential.
 Lack of government experience at the Centre and state level in supporting tech-based
entrepreneurs is yet another problem. The government needs to bring state governments
on board to ensure that bureaucrats are trained to extend full support to young
entrepreneurs and ensure they contribute to growing their business rather than act as a
hindrance.
 A lot of talent exists in smaller towns and villages for basic need based innovation, as well
as social innovation. At present, there is a complete lack of eco-system outside the larger
metros, therefore, if Start-up India; Stand-up India has to succeed, it is important for the
government to extend this new initiative at the grassroots level. And this will be no easy
task as many government officials at the district and block levels still don’t know how to
use the computer, let alone advise anyone on innovative entrepreneurship.
 The government has to identify officials at the Centre and state level, in coordination with
state governments, and initiate an extensive and ongoing training program that will
prepare these officials to be entrepreneur friendly and actually develop the skills required
to provide support, as needed.

Finance Minister Arun Jaitley launched the Credit Guarantee


Fund on 6 January 2016. The scheme, which has been launched under the Stand
Up India, has been designed to address the needs of the SC/ST categories along
with women entrepreneurs. Loans and credit guarantee protection will be
offered to at least two entrepreneurs under the scheme by every branch of each
bank. For SC/ST and women entrepreneurs.
OBJECTIVE OF THE STUDY

The study mainly aims at the analysis of Start Up India from the point of view
of Agricultural Sector . Specially the objectives are :-

Young Indians today have an conviction to venture out on their own and a
conductive life. In today’s environvent we have more startups and
entrepreneurs than ever before and the moment is at the cusp of a revolution.
However , many start-ups do not reach their full potential due to limited
guidance and access.

The “Start-up India Hub” will be a key stakeholder in this vibrant ecosystem
and will.

 Work in a hub and spoke model and collaborate with central & state
government , Indian and foreign VCs angel networks , banks , incubators,
legal partners , consultants , universities and R&D institutions
 Assist Start-ups through their life cycle with specific focus on important
aspects like obtaining financial , feasibility testing, business structuring
advisory , enhancement of marketing skills , technology
commercialization and management evaluation.
 Organise mentorship programs in collaboration with government
organizations, incubation centres, educational institutions and private
organizations who aspire to foster innovation.
To all young Indians who have the courage to enter an environment of risk, the
Start-Up India Hub will be their friend , mentor and guide to hold their hand and
walk with them throughout this journey

CHAPTER :- 2

REVIEW OF LITERATURE

UNDERSTANDING THE FINANCING CHALLENGES FACED BY STARTUPS IN India, and


discuss the financing resources of startups in India by Using a literature-based analysis.
Keywords: Startups; Financing; SMEs; Venture Capital; Graduates Entrepreneurship . Definition
of Startup Astartup company or startup or start-up is a young company that is just beginning to
develop. 2015 was the biggest year for Indian Startups – The HinduChennai, Hyderabad,
Pune, Ahmedabad, Jaipur are also emerging as startup-hubs. India has seen an upsurge
in startup funding . Entrepreneurship plays an eminent function in creating an avenue for
India, Startups and open innovation: a review of the literature analysed. How and if start-
ups adopt practices, and how do they manage the knowledge flows among different partners are
still an unresolved question. The aim of this paper is to fill this gap through a review of
the literature on startups and in order to move forward the field to do fresearch on startup .
.The Biggest Roadblocks Faced by Startups in India – IamwireStartup founders answer to
what are the biggest challenges startups face in India Startup Report to India's startup
ecosystem.
Startup scene in India has become rather magnetic in recent months – in fact so powerful that
it has attracted several Startups and open innovation: a review of
the literature Purpose Startup companies represent a powerful engine of open innovation (OI)
processes. The purpose of this paper is to represent a first step in building a map of the state-of-
the-art knowledge of the “startups in an OI context” phenomenon.Research:
Technology Startups, Entrepreneurs, Business Venture Center is a Pune based business
incubator focusing on technology commercialization via spin-offs/spinouts while
nurturing startups in India. Problems Facing Indian Startups – Tech.CoAccording to a recent
study done by the Kauffman Foundation, 33.2 percent of the cofounders of tech firms founded by
immigrants in the US are Indians
Why India's Startups Are The Investment Of The Moment – Forbes
The draw of the startup scene in India has become rather magnetic in recent months – in fact
so powerful that it has attracted several 5 Problems Facing Indian Startups – Tech.CoThough
this aims to stop money laundering, analysts say it will affect the investment scenario for
startups. Moreover, to register your startup takes a minimum of two to six months. Although the
road to launch and get started with a startup company is difficult, things are progressing
interestingly.India – the world's fastest growing startup ecosystemNASSCOM 10,000
Startups. NASSCOM has come up with an ambitious initiative called “10,000 Startups”, aiming to
scale up the startup ecosystem in India by 10x. The program is supported by Microsoft, Google,
Intel, Verisign, and Kotak. 10,000 Startups aims to enable incubation, funding and support for
10,000 startups in India over the next ten years.Startup India Action Plan 2016 Highlights –
IndiaFilingsStartup India Action Plan 2016. Startup India is a flagship initiative of the Government
of India to build a vibrant startup eco-system in India to drive economic growth and large scale
employment opportunities. The Startup India initiative was announced at the Red Fort on the
occasion of India’s 69th Independence Day.Blog – Evolution of the startup ecosystem in
IndiaEvolution of the startup ecosystem in India . The startupecosystem of India is changing
day by day and this evolutionReview your website to get Literature Review For Consumer
Awareness Free EssaysLiterature Review For Consumer Awareness. LITERATURE
REVIEW In recent days India is witnessing a change in consumerism. The market is now
predominantlyPrivate Equity Investments:

A Literature Review | Interal Study conducted, being exploratory in nature, is expected to


highlight private equity and its various aspects. For studying the concept secondary source of
information has been considered, analyzed and reviewed. In depth review of the available
literature has been undertaken with a view to focus on identifying the issues and gaps that exist
therein.Economic Survey 2016: 19,000 startups in Indiabut exit NEW DELHI:
While India's startup ecosystem continues to develop at a rapid pace, the exit options for risk
capital investors, who have poured in billions E-Business: Issues & Challenges in
Indian PerspectiveE-Business: Literature review India has an internet user base of about
137 million as of June 2012.Startup in India, Pitch Your Business
Ideas, Startup FundingStartup Warehouse Program is a joint initiative between Nasscom 10000
Startups and the respective State governments. It is a connected network of startup hubs across
the country to help startups jumpstart their idea with the help of infrastructure, knowledge-sharing
and connections.Blog – Evolution of the startup ecosystem in IndiaWhile Indian startup space
is yet to see the true value of ESOPs, there are many who are willing to take the leap of faith.
Acceptance of the ESOPs is increasing and it goes to show that Indians are following Silicon
Valley and are fast understanding its value.
small business success: a review of the literature – EquityNet
this review of the literature will concentrate on reasons for small business success, which can in
turn also infer reasons for failure for those who are interested in that topic. Three categories for
success emerge in this review. They are strategic issues, demographics, and owner
characteristics. However, thereLiterature Review For Consumer Awareness Free
EssaysLiterature Review For Consumer Awareness. LITERATURE REVIEW In recent
days India is witnessing a change in consumerism. The market is now predominantly Economic
Survey 2016: 19,000 startups in India but exit "Indian startups raised $3.5 billion in funding in
the first half of 2015, and the number of active investors in India increased from 220 in 2014 to
490 in 2015. As of December 2015, eight Indian startups belonged to the 'Unicorn' club (ventures
that are valued at $1 billion and upwards)."Literature review on – The WritePass
JournalHowever, most have focused on only limited aspects of the issue. A literature review that
aims to take a wider perspective may therefore be useful in providing a better understanding of
what may be a relatively complex decision-making process.The impacts of E-commence on
international business and The impacts of E-commence on international business and
marketing: A literature review impacts of Internet on International business and
marketing Indian Startups: What are advantages and disadvantages of Indian Startups: What
are advantages and disadvantages of registering a private company before looking for
investors?. Each call, the Council and its 2017 Knowledge Partners, EY, iCreate & will rotate
between highlighting a U.S. based and India based startup or VC firm. Call in details will be sent
out before the call to all registered.Latest News and Analysison Startups, Emerging Start-
up Get all the latest news and analysis on emerging Start-ups, Start-ups Companies,
Entrepreneurs, best startup entrepreneurs, investors & more in India on Startupindia,.

CHAPTER :- 3

RESEARCH METHODOLOGY

10 technological innovations that are


revolutionizing Indian agriculture
The Minister of State for Agriculture Tariq Anwar had said that as per estimates by the Central Statistics

Office, the share of agricultural products/agriculture and allied sectors in the country’s Gross Domestic

Product (GDP), which was 51.9 per cent in 1950-51, has come down to 13.7 per cent in 2012-13. That

contribution is abysmally low for a sector that employs about 50 per cent of the country’s population.

However, this is mainly due to the farmers’ inability to generate income from their crops and curb their

growing debt.

What can we do about it? Some startups came up with an innovative answer to that question. Here are ten

notable innovations such companies have produced:


1. Barrix Ago Sciences

The Bangalore-based startup offers eco-friendly crop protection methods after much research on products

that support organic farming to increase crop produce and quality with minimal expenditure.

Products:

o Barrix Catch Fruit and Fly Lure + trap: Toxic pesticides contaminate water, soil and leave behind harmful

residue, besides being expensive. Barrix’s pheromone-based pest control traps have artificially synthesised

smelling agents that attracts and traps pests. Instead of eating the crops, the pests are attracted to the

pheromones in the traps.

o Fly pest sticky sheet: Barrix uses bright yellow and blue coloured recyclable sheets of wavelengths

between 500 nm to 600 nm, proven to effectively attract and trap at least 19 high-risk pests from a long

distance.
2. Anulek Agrotech
Set up by Mumbai-based entrepreneurs, Anulekh focuses on increasing soil fertility to achieve higher

agricultural productivity and crop yield with lower resource use.

Product:

BIOSAT: BIOSAT (Biochar based organic Soil Amendment Technology), a soil additive, is made of

biochar mixed with different organic nutrients. The product preserves soil fertility, traps carbon emissions,

maintains the topsoil strength and increases crop production, thus reducing dependency on chemical

fertilizers.

3. Mitra

A Nashik-based startup, MITRA (Machines, Information, Technology, Resources for Agriculture) aims to

improve mechanization at horticulture farms with the use of R&D and high quality farm equipment.

Products:

Air blast sprayers: Developed for fruits and vegetables in general, and grapes and pomegranates in

particular, the sprayers, used to add hormones that help the growth of crops, reduce the expenditure on

manual labour and are less time-consuming.


4. CropIn Technology Solutions

A farming technology solutions startup founded by a Bangalore software engineer, it provides agri

businesses the technology and expertise to create a smarter and safer food supply for consumers around the

world.

Product:

CropIn offers information on a cloud-based platform, integrated with a mobile app for Android. Called

Smart Farms, it allows large food companies to track the growth of crops on farms around the country with

details about what the crop is and the conditions it is grown in to help companies remotely monitor farms,

interact with farmers and make every crop transparents and traceable. It also aids farmers in adopting

global agricultural practices and improves productivity by offering productivity insights and harvest

forecasts.
5. Eruvaka Technologies

An organisation based in Vijayawada, Andhra Pradesh, its mission is to accelerate the use of technology in

aquaculture, an area where farmers face problems due to unavailability of adequate technology to measure

and control water health.

Product:

Eruvaka Technologies, to help farmers monitor aquaculture ponds, develops solar-powered flouting buoys

that measure different water parameters, such as oxygen levels, temperature and pH range, crucial for the

growth and survival of fish and shrimp. The collected information is uploaded on the cloud and transmitted

to individual customers through an Android app, SMS, voice call or the internet. Farmers can also

remotely control automated equipment such as aerators and feeders.


6. Skymet

Skymet is India’s largest weather monitoring and agri-risk solutions company. According to their website,

they are the experts in measuring, predicting, and limiting climate risk to agriculture, thus reducing losses

incurred due to bad weather conditions.

Product:

Launched to aid farmers, Skymet’s weather website offers services such as weather forecast, crop

insurance and agri-risk management. Prediction of weather conditions can help prepare a farmers for a

drought or heavy unseasonal rainfall and help them take appropriate preventive measures, they say and

claim to accurately measure and predict yield at the village level for any crop.

7. Ekgaon

Flickr CC Ananth BS
A Gujarat-based venture started in 2001, Ekgaon Technologies is an IT based network integrator that

provides a technology platform and offers a range of services to farmers in rural areas including financial,

agricultural inputs and government assistance.

Products:

o Financial: A mobile phone enabled financial services delivery platform, it provides information on

microfinance institutions and banks for delivery of door-step services such as credit, savings, remittance,

insurance, investment and mortgage.

o Agricultural: Offered in Hindi, Gujarati and Tamil languages, the system uses mobile, voice recognition,

interactive voice response system (IVRS) and web technologies to provide information on weather,

commodity market prices, soil nutrient management and crop management.

o Citizen: The web and mobile applications help citizens monitor the delivery of government programmes

and services entitled to them.


8. Digital Green

Digital Green is a not-for-profit international development organisation that focuses on training farmers to

make and show short videos where they record their problems, share solutions and highlight success

stories as community engagement to improve lives of rural communities across South Asia and Sub-

Saharan Africa.

Products:

o It uses technology-enabled behaviour change communication that is cost-effective, scalable and brings

together researchers, development practitioners, and rural communities to produce and share locally

relevant information through videos.

o Two social online games Wonder Village and Farmer Book: In the games, players simulate a village

economy and relate with actual farmers that Digital Green works with, on the field. The players are placed

in a resource-constrained setting in which they have to complete quests such as set up paddy and maize

farms and supply raw materials to the farmers’ markets.


9. FrontalRain Technologies
The Bangalore-based agri-tech startup seeks to deliver affordable advanced technology solutions for

emerging companies and take technology to remote corners of the country.

Product:

The company’s offering Rain+, according to their website, is a comprehensive suite of products on the

cloud for food and agribusinesses. Rain+ can help companies at every stage of the value chain starting

from growing, processing, logistics, wholesale trade, retail trade and exports. This technology, accessible

through desktop, tablet and mobile devices, is used by companies dealing with commodities like spices,

herbs, basmati rice, seeds, animal feed, sea food, dairy and edible oil.

10. Agrostar

A Pune-based ‘direct to farmer’ m-commerce platform, Agrostar strives to provide quality agro inputs at

the farmers’ doorstep.

Product:

AgroStar enables farmers to procure a range of agricultural goods such as seeds, crop nutrition, crop

protection and agri-hardware products by simply giving a missed call on the company’s 1800 number or

through their mobile app to eliminate unavailability of products, substandard products, duplication and

adulteration.

The Social Innovation Sandbox is a series chronicling novel solutions across the country that are seeking

to transform life quality for the millions at the base of the pyramid in India.
LAUNCHING OF START UP INDIA

Launched in January 2016, the Narendra Modi government’s Startup India campaign initially drew

applause from both founders and investors. The tax exemptions, patent reforms, and incubation

programmes under this scheme were aimed at encouraging budding entrepreneurs. A single

point of contact, the Startup India hub, was also established for the entire ecosystem. The

burdensome red tape was reduced, too.

These steps have also encouraged several state governments also to support entrepreneurship in

the world’s third-largest startup ecosystem.

But nearly two years since it’s launch, the programme has had a pretty underwhelming success.

For instance, as part of the Startup India Action Plan, the Indian government had set up a Fund

of Funds with a total corpus of Rs10,000 crore ($1.6 billion) to support these companies over the

next four years. This money is disbursed via the Small Industries Development Bank of India

(SIDBI).

Yet, almost half-way into plan tenure, just over 10% of the total fund has been released. As on

Dec. 18, “Rs605.7 crore has been committed by SIDBI and Rs. 90.62 crore disbursed to 17

Alternative Investment funds (AIFs), who in turn have invested Rs. 337.02 crore in 75 Startups,”

C R Chaudhary, minister of state for commerce and industry, stated in a written response to a

question in the Lok Sabha on Dec. 18.

DETAIL VIEW ON START UP INDIA


The campaign was first announced by Indian Prime Minister, Narendra Modi during his 15
August 2015 address from the Red Fort, In New Delhi.[1] The action plan of this initiative, is based
on the following three pillars:

1. Simplification and Handholding.


2. Funding Support and Incentives.
3. Industry-Academia Partnership and Incubation.

An additional area of focused relating to this initiative, is to discard restrictive States Government
policies within this domain, such as License Raj, Land Permissions, Foreign Investment
Proposals, and Environmental Clearances. It was organized by The Department of Industrial
Policy and Promotion (DIPP).[2] A startup defined as an entity that is headquartered in India,
which was opened less than seven years ago, and has an annual turnover less than ₹25
crore (US$3.8 million).[3] Under this initiative, the government has already launched the I-MADE
program, to help Indian entrepreneurs build 1 million mobile app start-ups, and the MUDRA
Banks scheme (Pradhan Mantri Mudra Yojana), an initiative which aims to provide micro-finance,
low-interest rate loans to entrepreneurs from low socioeconomic backgrounds. Initial capital
of ₹200 billion (US$3.1 billion) has been allocated for this scheme.

Key Point....

 10,000 crore startup funding pool.


 Reduction in patent registration fees.
 Improved Bankruptcy Code, to a ensure 90-day exit window.
 Freedom from mystifying inspections for first 3 years of operation.
 Freedom from Capital Gain Tax first 3 years of operation.
 Freedom from tax for first 3 years of operation.
 Self-certification compliance.
 Create an Innovation hub, under the Atal Innovation Mission.
 To target 500k schools, and involve 1m children in innovation related programmes.
 New schemes to provide IPR protection to startup firms.
 Encourage entrepreneurship within the country.
 Promote India across the world as a start-up hub.

 Launch[edit]
 The event was inaugurated on 16 January 2016 by finance minister Arun Jaitley. Among
the attendees were CEOs, startup founders and venture capitalists.[4][5]
 Government's role[edit]
 The Ministry of Human Resource Development and the Department of Science and
Technology have agreed to partner in an initiative to set up over 75 such startup support
hubs in the National Institutes of Technology (NITs), the Indian Institutes of Information
Technology (IIITs), the Indian Institutes of Science Education and Research (IISERs)
and National Institutes of Pharmaceutical Education and Research (NIPERs).[6]
 The Reserve Bank of India said it will take steps to help improve the ‘ease of doing
business’ in the country and contribute to an ecosystem that is conducive for the growth
of start-up businesses.[7]
 Investments[edit]
 SoftBank, which is headquartered in Japan, has invested US$2 billion into Indian
startups. The Japanese firm has pledged to investment US$10 billion. Google declared to
launch a startup, based on the highest votes in which the top three startups will be
allowed to join the next Google Launchpad Week, and the final winner could win an
amount of US$100,000in Google cloud credits.[8] Oracle on 12 February 2016 announced
that it will establish nine incubation centers
in Bengaluru, Chennai, Gurgaon, Hyderabad, Mumbai, Noida, Pune, Trivandrum and Vija
yawada.[9]
 State initiatives[edit]
 Kerala has initiated a government startup policy called "Kerala IT Mission" which
focusses on fetching ₹50 billion (US$770 million) in investments for the state's startup
ecosystem. It also founded India's first telecom incubator Startup village in 2012.[10] The
state also matches the funding raised by its incubator from Central government with
1:1. Telangana has launched the largest incubation center in India as "T-Hub". Andhra
Pradesh has allocated a 17,000-sq.ft. Technological Research and Innovation Park as a
Research and Development laboratory. It has also created a fund called "Initial
Innovation Fund" of ₹100 crore (US$15 million) for entrepreneurs.[11] The government
of Madhya Pradesh has collaborated with the Small Industries Development Bank of
India (SIDBI) to create a fund of ₹200 crore (US$31 million). Rajasthan has also
launched a "Start-up Oasis" scheme.[11]In order to promote start-ups in Odisha, the state
government organised a two-day Start-up Conclave in Bhubaneswar on November 28,
2016.[12][13]
 Higher education alliances[edit]
 As per the "Industry-Academia Partnership and Incubation" focus of the Startup India
initiative, the Union Ministry of Human Resource Development has announced plans for
the development of "Research Parks" to be created in partnership with higher education
providers across India. An initial investment of Rs.100 crore, has been set aside for the
program, which aims to provide students with access to funds and mentorship for
startups.[14]
 The Innovation in Mobile App Development Ecosystem (I-MADE) program was also
rolled-out in February 2016. An initiative developed in partnership with The Department
Of Telecommunications (Govt of India), Telecom Centers of Excellence (TCOE), EVC
Ventures, and Unifyed, it aims to help Indian entrepreneurs create mobile app
startups.[15][16] The program is scheduled to last for 5 years, and has collaborated with 11
Indian universities.[17]

 Antyodaya Anna Yojana

 Atal Pension Yojana

 Beti Bachao, Beti Padhao Yojana

 CGHS

 DAY

 DBT

 DDUGJY

 DDU-GKY

 HRIDAY

 Housing for All

 ICDS

 Income declaration scheme, 2016


 JAM Yojana
Schemes
 KVPY

 Midday Meal Scheme

 NSAP

 NSS

 POPSK

 PMAGY

 PMGAY

 PMGSY

 PMJDY

 Pradhan Mantri Garib Kalyan Yojana

 PMKSY

 Pradhan Mantri Bhartiya Jan Aushadhi Yojana Kendra


 PMMVY
 Pradhan Mantri Jeevan Jyoti Bima Yojana

 Pradhan Mantri Kaushal Vikas Yojana

 Pradhan Mantri Suraksha Bima Yojana

 Rashtriya Krishi Vikas Yojana

 SAGY

 SGSY

 Soil Health Card Scheme

 UDAY

 UDAN

 UJALA

 AMRUT

 Mission Indradhanush

 NICRA

 National Mission for Manuscripts

 NRHM

 ASHA

Missions National Translation Mission

 Providing Urban Amenities to Rural Areas

 Rashtriya Madhyamik Shiksha Abhiyan

 Rashtriya Uchchatar Shiksha Abhiyan

 Sarva Shiksha Abhiyan

 National Solar Mission

 Smart Cities Mission

 TB-Mission 2020

 Bharatmala

 Indian Rivers Inter-link


Projects Sagar Mala project

 Setu Bharatam

 Urja Ganga Gas Pipeline Project

 Accessible India Campaign

 Digital India

 Make in India
Campaigns
 Skill India

 Standup India
 Startup India
 Swachh Bharat Abhiyan

 Unnat Bharat Abhiyan

 Aadhaar

 Business identification number

 Indian passport
IDs Permanent account number

 Ration card (India)

 Unorganised Workers' Identification Number

 Voter ID (India)

 Bhamashah Yojana

 Biju Krushak Kalyan Yojana

 Invest Madhya Pradesh


State Jyotigram Yojana

 Swasth Jeevan Sewa Guarantee Yojana

 Rajiv Gandhi Jeevandayee Arogya Yojana

 Vibrant Gujarat

Closed

 Bharat Nirman

 JSY

 JnNURM

 Kasturba Gandhi Balika Vidyalaya

 MPLADS

 NLM

 NPS

 NRLM

 Pooled Finance Development Fund Scheme


Schemes RNTCP

 RSBY

 Rural Landless Employment Guarantee Programme

 Saakshar Bharat

 Sampoorna Grameen Rozgar Yojana

 Swabhimaan (campaign)

 Voluntary Disclosure of Income Scheme


OPERATION ON AGRIULTURAL SECTOR
In an attempt to promote innovation and entrepreneurship in agriculture, the
government is launching a new AGRI-UDAAN programme that will mentor
startups and help them connect with potential investors.

Managed by India’s premier farm research body, the Indian Council of


Agricultural Research (ICAR), the food and agri-business accelerator
programme to be launched on Friday will also help convert innovative ideas
from India’s rural youth into viable businesses.

“The idea is to attract the youth from rural India and elsewhere, and train them
so they can add value to the farmers’ produce,” said Narendra Singh Rathore,
deputy director general of agricultural education at ICAR.

Rathore added that following an intensive training lasting six months, the new
start-ups will be connected to investors for funding.

“Our goal is to begin a start-up revolution in agriculture which so far has been
limited to the services sector,” he said.

Under the programme, start-ups will get incubation space to run their businesses
and have access to research laboratories and libraries. AGRI UDAAN will also
help the selected start-ups with regulatory services like company registration
and environmental compliances.

In the pre-launch phase of the programme that began in 2015, the ICAR’s
National Academy of Agricultural Research Management (NARM) in
Hyderabad incubated several new start-ups which are now processing exotic
grains, manufacturing kinetic farm machines, and developing smart irrigation
systems.

The companies include Hyderabad-based Inner Being, which processes locally


grown and exotic millets and caters to the high-end wellness market. Another
start-up, FlyBird Innovations in Bengaluru is developing smart irrigation
techniques based on soil temperature, atmospheric humidity and water
availability.
Kinemach, a company mentored under the UDAAN programme is developing a
new range of farm machinery that mimics human tasks on the field—from
ploughing to weeding.

Each of these companies also managed funding between Rs60 lakh to Rs1.3
crore from corporates and venture capitalists, said an official with NARM who
did not want to be named.

Following the launch of the programme on Friday, AGRI-UDAAN will reach


out to agri-start-ups in several cities like Chandigarh, Ahmedabad, Pune,
Bangalore, Kolkata and Hyderabad. The programme will shortlist 40 start-ups
in the first round who will pitch their ideas to a panel of evaluators. Out of
these, between 8 to 12 start-ups will be selected for the final capacity building
workshop.

“Farming is a profession of hope.” And India holds the record for the second-
largest agricultural land in the world, with around 60% rural Indian households
making their living from agriculture.

This not only speaks about millions of hopes associated with agriculture but
also points out to the huge scope for agritech startups in the country to make
those hopes of Indian farmers come true.

Likewise, the central and state governments are proactively pursuing policies to
improve farmers’ lives in India. In fact, PM Modi’s government has an aim to
double the average farmer’s income by 2022. No wonder, agritech became the
new buzz word in the Indian startup ecosystem in 2017 and a hot topic for
discussion in most of the startup conferences and events in India.

But a drop in landholdings (average 1.4 hectares), small and fragmented land
holdings, a decreasing agricultural land versus a growing population, decreasing
groundwater levels, poor quality of seeds, and lack of mechanisation are some
of the challenges for the growth of agriculture in India.
And that’s not enough, an absence of an organised marketing structure for
produce, malpractices in the existing unorganised agricultural markets,
inadequate facilities for transportation and storage, scarcity of credit, and
limited access to superior technology are some of the many afflictions which
obstruct the Indian agricultural sector.

Opportunities lie in areas like how to increase crop production, improving the
nutritional value of the crops, reduction in input prices for farmers, improving
the overall process-driven supply chain, and reducing wastage in the
distribution system, among others.

Agritech startups are also leveraging technology in the area of market linkages
such as retail, B2C and B2B marketplaces and digital agronomy startups. They
are now able to address input challenges of agriculture in India from the very
beginning.

HPS COCONUT
1. INTRODUCTION:-

The project envisages setting up of Hand-Picked and Selected Groundnut Processing Unit
based on the raw material strength of Gujarat. The manufacturing unit can focus on
cultivation, processing, packaging, export, etc. The three important processed products from
groundnut are: (i) Hand-picked and selected ground-nuts (HPSG) (ii) Roasted and salted
groundnuts, and (iii) Edible oil. Edible groundnuts are traditionally called HPSG in trade
circles HPSG is traditionally an export earner Domestic and international trade in HPSG is
undertaken as per the size of the groundnuts termed as “Count”- Based on the count,
kernels are classified into four broad groups; small (60-80 counts); medium (40-60 counts);
large (30-40 counts); and very large kernels (20-30 counts) A larger size of the kernel
means lower count and would fetch a higher price and vice versa. Groundnuts (Arachis
Hypogaea) or peanuts, are a food that is rich in protein and oil. Groundnut kernels contain
42% to 50% oil, 26% protein, 18% carbohydrates and are a source of riboflavin, thiamine,
nicotinic acid, and Vitamin E. The digestibility of groundnut kernels is high, with little
difference between raw and processed nuts. Groundnuts for edible use requires considerable
processing and sorting to ensure high quality: removal of stones and other foreign matter;
removal of shell, removal of kernels that are shrivelled, off-color, or otherwise
unsatisfactory; and grading for size and uniformity. In this process a large measure of hand
sorting is needed to get the required quality. Therefore, edible groundnuts are traditionally
called 'Hand Picked and Selected Groundnuts' or 'HPS Groundnuts' (HPSG) in trade circles.
The Government of Gujarat is proposing to establish Agri Export Zones (AEZ) for Groundnut,
and few other agricultural products. The main objective of AEZ is to provide higher returns
to the farmers by enhancing their accessibility to export and extending their capacity to
produce export specific quality products.

2. PRODUCT & ITS APPLICATION:-

The two major varieties of peanuts produced in India are Bold (Virginia) and Java (Spanish)
types. The winter crop of peanuts is rain-fed crop whereas the summer crop is irrigated.
70% of the winter crop is the bold variety and 85% of the summer crop is Java variety. The
Bold variety peanuts are typically red skinned with elongated shape. The Java variety
peanuts are pink skinned with round spheroid shape. HPSGs are graded into sizes which
confirm to counts per ounce. For instance, 55-60 count means 55 to 60 kernels per ounce.
Based on this count, kernels are classified into four broad groups; small (60-80 counts);
medium (40-60 counts); large (30-40 counts); and very large kernels (20-30 counts);
Usually, counts have a range of 10 for small kernels, a range of 5 for medium and large
kernels, and a range of 2 for very large kernels. Similarly, a range of 2 is preferred for nuts-
in-shell. HPSGs are normally indicated by country of origin, varietal group and count; for
instance, Indian Bold 55/60; US Virginias 28/30; South Africa Natals 60/70; etc.
3. INDUSTRY LOOKOUT AND TRENDS:-

Groundnuts, a staple food for many developing countries, deserves a closer look as an
export commodity. Less than 6% of the world groundnut crop is traded internationally, with
export sales averaging close to US$ 1 billion dollars per year. There is, therefore, scope for
export growth in groundnuts.
Investing in groundnuts is a sustainable way to address the rising needs for both food and
foreign exchange. Today's exporters face two major challenges: ensuring food safety by
preventing and controlling mycotoxin contamination of products and adapting groundnut
supplies to demand for varieties best suited to specific end-uses.
China took advantage of market reforms, as well as increased use of high-yielding seed
varieties and agricultural inputs (fertilizers, pesticides, insecticides, mechanization and
irrigation), to recently overtake India as the world's largest groundnuts producer. In China,
over 3.6 million hectares are under groundnut cultivation and 6 million tons are produced
yearly. India is the second largest producer, with surfaces under the crop exceeding 8
million hectares and outputs averaging 5.6 million tons per year. The United States, Nigeria,
Argentina and Indonesia are the following largest producers, with annual outputs varying
between 1 and 1.5 million tons per year.

Groundnut production in African countries fluctuated greatly, though it never exceeded 8%


of the world output over the last decade. Yields per hectare are low, because of a
combination of factors: unreliable rains; mostly non-irrigated cultures; small-scale,
traditional farming with little mechanization, outbursts of pests and diseases and use of low-
yielding seed varieties; and increased cultivation on marginal land. Political instability and
the frequently unsupportive oilseed policies have also played their role

4. RAW MATERIAL REQUIREMENTS:-

India is the second largest groundnut producer in the world after China (China: 41%, India
11%) Groundnuts account for about 15% of all oilseeds produced in India. 90% of
groundnut produce in India mainly comes from six states: Gujarat (~40%), Andhra Pradesh
(~18%), Tamil Nadu (~11%), Karnataka (~9%), Rajasthan (~8%) and Maharashtra (~6%)
Gujarat (more particularly Saurashtra region) is the single largest as well as the best quality
groundnut producer accounting for over 30% of total groundnuts produced in the country.
5. MANUFACTURING PROCESS:-

Stage 1: Farm Quality Check, Classification of In shells, De-stoning, Shelling, Magnetic


Separation, Inspection & Sorting, Classification of pod and kernels, Intake bins.
Stage 2: Classification of Kernels, Magnetic Separation, De-stoning, Vibro Grading, Uniform
Gradation, Aspiration, Bi-chromatic Color Sorting, Metal Separation, On-line Auto Sampling,
Loading, Lab analysis, Computerized Packing.
Capacity of the Project the rated capacity for the peanut processing unit is 1350, Recovery
from groundnut shells or pods is 55% HPS.

Raw material: The sample units procured the raw material from Mangrol, Keshod, Junagadh,
Kutch through brokers at INR 1700-1800 per tonnes. Packing: The processed groundnut is
packed in 50 kg gunny bags which are available locally. Storage: The groundnut kernels are
stored in godowns/ covered sheds. Transportation: Mode of transportation of both raw
material and processed goods is truck (tarpaulin closed). Finished products are sold to
parties through agents to places like Rajkot, Bharuch, Ahmedabad, etc.

6. COST OF PROJECT:-

The project shall cost ₹ 46.41 lacs as detailed below:


Sr. No. Particulars ₹ in Lacs
1 Land 2.00
2 Building 3.00
3 Plant & Machinery 3.50
4 Furniture, other Misc. Equipments 1.00
Other Assets including Preliminary /
5 0.35
Pre-operative expenses
6 Margin for Working Capital 36.56
Total 46.41

7. MEANS OF FINANCE:-
Bank term loans are assumed @ 75 % of fixed assets.
Sr. No. Particulars ₹ in Lacs
1 Promoter's contribution 11.60
2 Bank Finance 34.81
Total 46.41

8. WORKING CAPITAL CALCULATION:-

The project requires working capital of ₹ 36.56 lacs as detailed below:

Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance

1 Inventories 18.28 0.25 4.57 13.71


2 Receivables 9.14 0.25 2.29 6.86
3 Overheads 9.14 100% 9.14 0.00
4 Creditors - 0.00 0.00
Total 36.56 16.00 20.57

9. PROFITABILITY CALCULATIONS:-

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


1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales ₹. In Lacs 526.50 614.25 702.00 789.75 877.50

Raw Materials & Other


3 ₹. In Lacs 508.31 593.03 677.75 762.47 847.19
direct inputs
4 Gross Margin ₹. In Lacs 18.19 21.22 24.25 27.28 30.32

Overheads except
5 ₹. In Lacs 3.58 3.81 4.26 4.39 4.48
interest
6 Interest @ 10 % ₹. In Lacs 3.48 3.48 2.32 1.74 1.39

7 Depreciation @ 30 % ₹. In Lacs 1.05 0.74 0.54 0.42 0.32

8 Net Profit before tax ₹. In Lacs 10.07 13.20 17.14 20.73 24.13

The basis of profitability calculation:

This unit will have 1350 tonnes per annum capacity. The growth of selling capacity will be
increased 10% per year. (This is assumed by various analysis and study, it can be increased
according to the selling strategy.)
Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per litre.
The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 %
depending on type of industry.

10. STATUTORY / GOVERNMENT APPROVALS-


The Ministry of Food Processing Industries has been operating several plan schemes for the
development of processed food sector in the country during the 10th Plan. One of the
schemes relates to the Technology Up-gradation/ Establishment/ Modernization of food
processing industries.

The Indian food processing industry is regulated by several laws which govern the aspects
of sanitation, licensing and other necessary permits that are required to start up and run a
food business. The legislation that dealt with food safety in India was the Prevention of Food
Adulteration Act, 1954 (hereinafter referred to as "PFA"). The PFA had been in place for
over five decades and there was a need for change due to varied reasons which include the
changing requirements of our food industry. The act brought into force in place of the PFA is
the Food Safety and Standards Act, 2006 (hereinafter referred to as "FSSA") that overrides
all other food related laws.

FSSA initiates harmonization of India's food regulations as per international standards. It


establishes a new national regulatory body, the Food Safety and Standards Authority of
India (hereinafter referred to as "FSSAI"), to develop science based standards for food and
to regulate and monitor the manufacture, processing, storage, distribution, sale and import
of food so as to ensure the availability of safe and wholesome food for human consumption.
Entrepreneur may contact State Pollution Control Board where ever it is applicable.
All food imports will therefore be subject to the provisions of the FSSA and rules and regulations
which as notified by the Government on 5th of August 2011 will be applicable.

Key Regulations of FSSA

A. Packaging and Labelling


B. Signage and Customer Notices
C. Licensing Registration and Health and Sanitary Permits

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery
manufacturers have been taken from reliable sources, to the best of knowledge and
contacts. However, no responsibility is admitted, in case any inadvertent error or
incorrectness is noticed therein. Further the same have been given by way of information
only and do not carry any recommendation.
***************

HONEY PROCESSING

1. INTRODUCTION:
Beekeeping is an ideal activity for development as a subsidiary occupation providing
supplementary income .Beekeeping is feasible in areas where adequate bee flora available
for minimum period of 6 months .Honey produced by Indian hive bees is collected by
modern extractor .The extracted honey contains haemophilic yeasts ,which causes
fermentation and destroy the quality of honey .To maintain the qualitative and quantitative
value of honey the processing in modern format.

2. PRODUCT & ITS APPLICATION:


From centuries, honey has been used as a natural sweetening agent and in the preparation
of confectionaries .It has vast application in the pharmaceutical industry and it is also
considered as a medicine by Ayurved .It is popularly used as a house hold cure for cough
and hence used as vehicle for medicines in many popular brands of Cough Syrup. It is a
preferred consumable for people on dieting . Honey is also used for making lozenges .
However,it is mostly sold in glass Jars as pure honey .In bottled honey normally moisture
content of honey is reduced .Good quality honey has high demand in the international
market and it has the potential to generate substantial foreign exchange for the Country.

3. INDUSTRY LOOKOUT AND TRENDS:


Approximately 130 million pounds of honey is imported into the United States each year.
This is a significant amount, considering it is over half of domestic production each year.
Honey is produced in other countries for export to the United States because it is a low-
tech, low capital business. The three leading exporters of honey to the United States are
Argentina, China, and Canada. Imports of honey into the United States have alarge effect on
the price of honey received by domestic honey producers. Even Sioux Bee Honey
Cooperative imports honey into the United States for packing and sale to the retailconsumer.
This is not popular with all consumers as some foreign honey enters the UnitedStates having
been mixed with corn syrup to add volume.

The National Honey Board and others in the honey industry are trying to find amarketing
niche for honey in the years to come. One area that they have focused a great deal of
generic advertising dollars on is potential health promoting effects of honey.There is
research being conducted currently that is examining honey’s role as a burnremedy, ulcer
medication, and antioxidant, laxative and as a wound healer. Honey is alsopopular with
some people in the alternative medicine arena and with people who areinterested in organic
food. Some people believe that honey is good for allergies or theybelieve that consuming
the wax from the comb promotes overall general health. Somepeople even attempt to treat
nervous system disorders, muscular disorders and arthritiswith bee stings. Even though the
overall trend in the United States is toward an alternativetype of medicine, it does not
appear that this trend will increase demand for honey verymuch over the next few years.
Without some kind of solid scientific study by the FDAconfirming any possible health benefits
of eating honey, it would seem that the industryshould concentrate on promoting honey as
a natural food or for its taste. Banking on anadvertising strategy that depends on changing
attitudes about health may be risky.

4 .RAW MATERIAL REQUIREMENTS:

Only honey and basic packing material (bottle, lids and labels) are required for raw material.

5 .MANUFACTURING PROCESS:

Honey collected from Bee-keepers are tested and fed into Honey Processing plant. The
plant removes excess moisture and waxin Honey to yield thick honey .The processed honey
is immediately bottled in clean wide mouthed bottles . It is then sealed by PP Caps . Bottles
are wiped dry and labelled ,Filled ,sealed & labelled bottles are then packed in labelled
cardboard boxes.

6 .COST OF PROJECT
The project shall cost INR 35 lacs as detailed below:

INR in
Sr. No. Particulars
Lacs

1 Land 7.50

2 Building 3.20

3 Plant & Machinery 15.50

4 Furniture, Electrical Installations 1.00

Other Assets including Preliminary / Pre-


5 1.55
operative expenses

6 Margin for Working Capital 6.25

Total 35.00

7 .WORKING CAPITAL CALCULATION:

The project requires working capital of INR6.25lacs as detailed below:


Sr. No. Particulars Gross Amt Margin % Margin Amt Bank Finance

1 Inventories 3.13 0.25 0.78 2.34

2 Receivables 1.56 0.25 0.39 1.17

3 Overheads 1.56 100% 1.56 0.00

4 Creditors - 0.00 0.00

Total 6.25 2.73 3.52

8.PROFITABILITY CALCULATIONS:

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

1 Capacity Utilization % 60% 70% 80% 90% 100%

2 Sales INR In Lacs 28.80 33.60 38.40 43.20 48.00

Raw Materials & Other direct


3 INR In Lacs 17.12 19.98 22.83 25.69 28.54
inputs

4 Gross Margin INR In Lacs 11.68 13.62 15.57 17.51 19.46

5 Overheads except interest INR In Lacs 8.38 8.91 9.96 10.27 10.48

6 Interest @ 10 % INR In Lacs 2.63 2.63 1.75 1.31 1.05

7 Depreciation @ 30 % INR In Lacs 10.85 7.75 5.43 3.88 3.49

-
8 Net Profit before tax INR In Lacs -5.66 -1.56 2.06 4.44
10.18

The basis of profitability calculation:

This unit will have 19,200 Kg/Annum capacity (per day 50 kg average). The growth of
selling capacity will be increased 10% per year. (This is assumed by various analysis and
study; it can be increased according to the selling strategy.)
Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per liter.
The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 %
depending on type of industry.

9 . STATUTORY / GOVERNMENT APPROVALS:

The Ministry of Food Processing Industries has been operating several plan schemes for the
development of processed food sector in the country during the 10th Plan. One of the
schemes relates to the Technology Up-gradation/ Establishment/ Modernization of food
processing industries.

The Indian food processing industry is regulated by several laws which govern the aspects
of sanitation, licensing and other necessary permits that are required to start up and run a
food business. The legislation that dealt with food safety in India was the Prevention of Food
Adulteration Act, 1954 (hereinafter referred to as "PFA"). The PFA had been in place for
over five decades and there was a need for change due to varied reasons which include the
changing requirements of our food industry. The act brought into force in place of the PFA is
the Food Safety and Standards Act, 2006 (hereinafter referred to as "FSSA") that overrides
all other food related laws.

FSSA initiates harmonization of India's food regulations as per international standards. It


establishes a new national regulatory body, the Food Safety and Standards Authority of
India (hereinafter referred to as "FSSAI"), to develop science based standards for food and
to regulate and monitor the manufacture, processing, storage, distribution, sale and import
of food so as to ensure the availability of safe and wholesome food for human consumption.
Entrepreneur may contact State Pollution Control Board where ever it is applicable.

All food imports will therefore be subject to the provisions of the FSSA and rules and regulations which as
notified by the Government on 5th of August 2011 will be applicable.

************
FRUIT JAMS, SQUASHES & COCKTAIL

1. INTRODUCTION:-

Jam, Jelly, Juice & squash are made from fruits and these are food items. This food
processing industry has thus far developed as a demand – based industry and hence only
about 1.5 percent of fruits of the country is processed so far. If promoted as a local
resource based industry its growth may be much larger especially because of fast increase
in export. India is second to only Brazil in fruit production. In fruit and vegetable production
India can boast of not only the quantity but also variety. Besides, the country is get to
exploit large part of horticultural land in the form of hill slopes. Transport, storage and
processing are the needs for fruit and vegetable, production in the country. At present about
40 percent of Indian horticultural produces go waste due to lack of these facilities. Fruits can
be processed to produce juice squash Jam, Jelly and Marmalades. Jam jelly making is simply
a profitable business. In addition, you can initiate the business as a small scale with low
capital investment. Food processing industry has started receiving a great deal of attention
from the policy makers. The current industrial policy in food processing is also favourable for
food processing industry. India is the 2nd largest producer of fruits and vegetables in the
world, and the food processing sector in the country is expected to double in the next
decade. The ever-growing consumer demands have opened up huge investment
opportunities for foreign and private entities in the food processing industry currently.

2. PRODUCT & ITS APPLICATION:-

Generally, jam and jelly from almost every type of fruit and some vegetables. Fruit jam
contains rich fruit pulp and available in mango, apple, mixed fruit, pineapple and
orange flavors. Jelly is a clear, bright mixture made from fruit juice, sugar and sometimes
pectin. Generally, people use jelly and jam as the bread spread and as a filling for some
cakes and cookies.
3. DESIRED QUALIFICATIONS FOR PROMOTER:-

Anyone can start this project. Successful running of this project does not require any specific
qualification. Promoter should have knowledge of ingredients, recipe, production process,
packaging etc.
4. INDUSTRY LOOKOUT AND TRENDS:-

The FRUIT JAMS, SQUASHES & COCKTAIL market is expected to register a CAGR of 3.5%
during the forecast period, 2018 to 2023. The global retail sales are set to reach 1.53 billion
USD by 2023. The jam, jelly, and preserves market is driven by the convenience of food
supplement items, preference for ready-to-eat products, and multiple distribution channels.
With the increasing popularity of gourmet varieties the market is likely to have a positive
outlook in the forecast period. Consumers consider gourmet jams and preserves as luxuries
and thus are popularly used for gifting.

Innovative product development with new flavors of untraditional fruits and organic
products is driving the jam, jelly and preserve market growth. Increasing health
consciousness and the inclusion of organic ingredients is driving the market. The market
growth is particularly evident in the non-traditional spreads segments of chocolate spreads
and nut/seed-based spreads, largely at the expense of jams and other fruit-based products.
Although the market is growing at a decent pace, the high cost of raw materials and
ingredients and government regulations on processed food and food additives are slowing it
down.

During 2017, the jams segment dominated the market and accounted for more than 40% of
the market share in terms of revenue. There is a huge versatility in jams, and many
consumers and vendors are experimenting different flavors. Example: The Girl and the Fig
Café sell Black Mission Fig Jam, which is a mix of fig and jam.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:-

Generally, domestic households, restaurants, and other eateries are the major consumers of
these items. It is estimated that the total production of processed fruit & vegetable in India
is about 15.0 lakh ton. Out of various products fruit juices and fruit pulp accounts for 27
percent, followed by jams & jellies only 10 percent and synthetics 8 percent. This is obvious
that the processed products of fruit & vegetable business will remain a growth industry for a
long time. One of the main reasons for the expectation of growth is that the consumption of
jam jelly is gaining popularity day by day owing to the growing change in the food habits
and increased consumption of bread and other convenient snack foods. Apart from Pickles
&Chatneys, preserved fruits are consumed primarily by urban and tourist oriented markets
in India. The limited domestic market for preserved fruits has been the primary cause of
slow progress of fruit preservation industry.

6. RAW MATERIAL REQUIREMENTS:-

The major raw materials required for the production of mixed fruit jam & jelly, marmalade is
different fruits and vegetables. These are orange, pineapple, guava, papaya, jackfruit and
banana. The consumables are sugar, citric acid, preservatives, food grade colors, chemicals,
pectin, flavors, common salt etc. Additionally, you will need to procure the packaging
consumables. First of all, you have to pack the product glass bottle or jars, And finally in
cartons. The unit shall use locally available fruits like pineapple, orange, Banana, Lime &
Lemon, Lichi and Guava, etc. are major fruits. it will need Sugar, Citric Acid, Polasium-Meta-
Bi-Sulphate, Benzoic Acid, Sodium Benzoate, Bottles & Crown/ PP Caps.

7. MANUFACTURING PROCESS:-

First of all, wash the fruits in water and remove the skins. After peeling, cut or slice them
into small pieces. Then, boil these pieces with water. Add an appropriate quantity of sugar
with the pulp. When the temperature is around 60 C; citric acid, colour, essence etc. are
added. This mixture is then stirred for a while, cooled and then packed in bottles. The
process flow chart is: Washing, peeling and slicing of fruits → Boiling → Mixing of sugar
with pulp → Cooling → Packing. Jelly: Washed and peeled fruits are fed to the hopper of a
juice extractor and the juice so obtained is filtered. Certain fruits like Rosella or guava need
to be boiled in water before extracting juice. Sugar is added to juice and then this mixture is
boiled to convert it in jelly form and pectin, citric acid, color etc. are added in the required
quantity. Boiling is done till jelly-like formation is obtained. Packing is done on cooling. The
process flow chart is: Washing and peeling of fruits → Addition of sugar in
juice → boiling → Cooling and Packing. Fruits are washed manually. Bottles are washed by
using Brushing, Rinsing, and Washing Machine. Washed Bottles are kept in Wire-Mesh Racks
and Dried in Tray Capacity sterilizing Dryer. Fruits are then manually packed sliced, Trained
and Cored by using knives and kept in stainless Steel Trays. Citrous fruits are halved and
juices are extracted by using screw-type juice extractor. Juicesare allowed to settle, filtered
and pasteurized. Juices are than mixed with preservatives juices are the principal inputs for
squashes cordial and jelly. For squashes Sugar & Citric Acid are heated with water. After
Sugar Syrup is made, it is cooled and filtered. Clear Syrup is mixed with fruit juice, essence
and permitted colors. In case of cordial Lime juice is first clarified by using gelatin and
Tanin. After testing Juice and Squashes are filled in clean sterilized bottles by using filling
machine. Bottles are capped by using P.P. cap sealing machine. Bottles are then wiped dry,
Labelled and filled in Corrugated Cardboard boxes. Jams are prepared by open pan boiling
of fruit pulp with sugar so that Gelatinous set of fruit & sugar is obtained by inviting about
40 percent of sugar. Pectin is added towards the end of the boiling process. Some fruits like
Orange & plum need pre-cooking to soften fruit tissues. Jelly is prepared by boiling clear
fruit juice with sugar, colour, pectin and citric acid so that a clear, sparkling, transluscent
fluid is obtained. Jam & Jelly are packed hot in glass jars and sealed when Jam or Jelly is
hot. Marmalades are Jam or Jelly with pieces of fruits & peels with slightly higher
percentages of pectin & Citric Acid.

8 . COST OF PROJECT:-

The project shall cost ₹ 36.30lacs as detailed below:


Sr. No. Particulars ₹ in Lacs
1 Land 0.00
2 Building 0.00
3 Plant & Machinery 12.00
4 Furniture, other MiscEquipments 1.50
Other Assets including Preliminary /
5 1.20
Pre-operative expenses
6 Margin for Working Capital 21.60
Total 36.30

STATUTORY / GOVERNMENT APPROVALS

The Ministry of Food Processing Industries has been operating several plan schemes for the
development of processed food sector in the country during the 10th Plan. One of the
schemes relates to the Technology Up-gradation/ Establishment/ Modernization of food
processing industries.

The Indian food processing industry is regulated by several laws which govern the aspects
of sanitation, licensing and other necessary permits that are required to start up and run a
food business. The legislation that dealt with food safety in India was the Prevention of Food
Adulteration Act, 1954 (hereinafter referred to as "PFA"). The PFA had been in place for
over five decades and there was a need for change due to varied reasons which include the
changing requirements of our food industry. The act brought into force in place of the PFA is
the Food Safety and Standards Act, 2006 (hereinafter referred to as "FSSA") that overrides
all other food related laws.

FSSA initiates harmonization of India's food regulations as per international standards. It


establishes a new national regulatory body, the Food Safety and Standards Authority of
India (hereinafter referred to as "FSSAI"), to develop science based standards for food and
to regulate and monitor the manufacture, processing, storage, distribution, sale and import
of food so as to ensure the availability of safe and wholesome food for human
consumption.Entrepreneur may contact State Pollution Control Board where ever it is
applicable.
All food imports will therefore be subject to the provisions of the FSSA and rules and regulations
which as notified by the Government on 5th of August 2011 will be applicable.

Key Regulations of FSSA

A. Packaging and Labelling


B. Signage and Customer Notices
C. Licensing Registration and Health and Sanitary Permits

************
FLAVORED PASTEURIZED MILK

1. INTRODUCTION:-

Flavored pasteurized milk Made with milk, sugar, colorings and artificial or natural flavorings.
Flavored milk is often pasteurized using ultra-high-temperature (UHT) treatment, which
gives it a longer shelf-life than plain milk. Pre-mixed flavored milk is sold in the refrigerated
dairy case alongside other milk products. Flavored sweetened powders or syrups which are
added to plain milk are also available. Since centuries, milk is
used for making various products as well as for direct consumption. With the advent of new
processing techniques, many products are added in this category. This phenomenal growth
is on account of nutritional values present in milk and its acceptance as a "complete food".
India has made commendable progress in milk production and is one of the largest
producers along with the USA. Milk and Milk products are consumed round the year by
people from all age and income groups. The overall market for flavored milk in India grew
27 per cent in value terms in 2014-15. With increased lifestyle and health concerns flavored
milk market is expected grow at considerably high rate in near future. Flavored milk has
gained substantial popularity but somehow coffee flavored milk is still not easily available
even though consumption of coffee has steadily increased, thus has potential in the market.

2. PRODUCT & ITS APPLICATION:-

Flavored milk contains sugar, colorings, and (mostly inexpensive artificial) flavoring added to
make it more appetizing, especially to children (a prominent example can be found in the
artificial strawberryflavor, ethyl methylphenylglycidate) can be sold as a powder to be added
to plain milk, or bought pre-mixed alongside other milk products. Flavoring can be included
in a straw, and some flavored milk products are designed as dietary supplements by
including additional vitamins or minerals. Only people who have certain diseases benefit
from this odd drink. Bottled spiced (masala) milk is a popular beverage in the Indian
subcontinent.
3. DESIRED QUALIFICATIONS FOR PROMOTER:-

Promoter with high business skill is basic need for this type of project. Successful running
this project does not require any specific qualification.

4. INDUSTRY LOOKOUT AND TRENDS:-

Although per capita consumption of fluid milk has been declining for more than 40 years,
the use of dairy ingredients in all types of beverages continues to grow. This is in part due
to dairy’s healthful halo , as many of the ingredients contribute protein and essential
vitamins and minerals, most notably calcium.

Depending on the beverage and the production process, either fresh fluid dairy, such as milk
and cream, or concentrated dry dairy ingredients may be used. The benefit to using the
latter is the beverage may typically be produced in a non-Grade-A fluid dairy manufacturing
plant. Such facilities are a requirement for the processing of raw fluid milk.

5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:-

The size of India's dairy industry is 3 crore rupees and milk accounts for most of this. The
2014-15 figures indicate that we produced 147 million tons of milk which makes us the
world's largest milk producer. Though a large part of this market is raw buffalo milk, we
decided to taste pasteurized cow's milk because it's more popular in Tier 1 and Tier 2 cities
where you won't find too many takers for raw milk. Raw milk comes straight from the farm
to your doorstep, along with a long list of unanswered questions about 'health and
safety.The World Health Organisation (WHO) suggests that an adult needs 400 to 500
milligrams of calcium a day to prevent bone fracture and maintain good bone health. One
glass of toned milk has about 125 milligrams of calcium, which means you need to drink
anywhere between three to four glasses of milk a day. Some other advocates of health and
food recommend as high as 1200 milligramsof calcium a day for people up to the age of 50.
The United States Department of Agriculture recommends three cups of milk a day for
anyone over the age of 8.In the dairy sector, most of the processing is done by the
unorganized sector. Though the share of organized sector is less than 15 per cent, it is
expected to rise rapidly, especially in the urban regions. Among the milk products
manufactured by the organized sector, some of the prominent ones are ghee, butter,
cheese, ice creams, milk powders, malted milk food, condensed milk and infant foods.
Addition of milk in tea or coffee is the most common and equally popular practice. Flavored
milk is yet another variant. Consumption of coffee is increasing steadily but availability of
coffee flavored milk is still not very comfortable. With increasing health awareness, many
people are switching over to milk and coffee flavored milk would be an attractive
proposition. Railway stations, air-ports, bus-stands, tourist spots, picnic centres, cold drink
stalls, hostels, restaurants, coffee bars or fast food restaurants, clubs, school canteens etc.
could be the major outlets.

6. RAW MATERIAL REQUIREMENTS:-

Basic Raw Material requiredas follows


 Raw Milk – as a base to process
 Sugar– for good test
 Flavors – for variety and test

7. MANUFACTURING PROCESS:-

Fresh milk is standardized according to fat contents and then heated at around 40 degree C
and filtered. Filtered milk is again heated at about 60-65degree C and stabilisers like DSHP
or TSC are added in very small quantity. Milk is then processed in homogeniser.
Simultaneously 5% concentrated coffee powder or flavor is mixed with water and filtered.
Then homogenized milk, sugar syrup and coffee/ flavor water are at around 80-85 degree C
and sterilized for about half an hour and immediately bottled.
8. COST OF PROJECT:-

Sr. No. Particulars ₹ in Lacs


1 Land 50.00
2 Building 100.00
3 Plant & Machinery 125.00
4 Furniture, other Misc Equipments 5.00
Other Assets including Preliminary /
5 12.50
Pre-operative expenses
6 Margin for Working Capital 60.00
Total 352.50

9. PROFITABILITY CALCULATIONS:-

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


1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales ₹. In Lacs 180.00 210.00 240.00 270.00 300.00
Raw Materials & Other
3 ₹. In Lacs 143.11 166.96 190.82 214.67 238.52
direct inputs
4 Gross Margin ₹. In Lacs 36.89 43.04 49.18 55.33 61.48
Overheads except
5 ₹. In Lacs 16.67 17.71 19.80 20.42 20.84
interest
6 Interest @ 10 % ₹. In Lacs 26.44 26.44 17.63 13.22 10.58

7 Depreciation @ 30 % ₹. In Lacs 87.50 62.50 43.75 31.25 28.13

8 Net Profit before tax ₹. In Lacs -93.72 -63.62 -31.99 -9.56 1.94

The basis of profitability calculation:


This unit will have 3, 00,000Liter/Annum capacity. The growth of selling capacity will be
increased 10% per year. (This is assumed by various analysis and study, it can be increased
according to the selling strategy.)

Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per litre.
The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 %
depending on type of industry.

10 . STATUTORY / GOVERNMENT APPROVALS

The Ministry of Food Processing Industries has been operating several plan schemes for the
development of processed food sector in the country during the 10th Plan. One of the
schemes relates to the Technology Up-gradation/ Establishment/ Modernization of food
processing industries.

The Indian food processing industry is regulated by several laws which govern the aspects
of sanitation, licensing and other necessary permits that are required to start up and run a
food business. The legislation that dealt with food safety in India was the Prevention of Food
Adulteration Act, 1954 (hereinafter referred to as "PFA"). The PFA had been in place for
over five decades and there was a need for change due to varied reasons which include the
changing requirements of our food industry. The act brought into force in place of the PFA is
the Food Safety and Standards Act, 2006 (hereinafter referred to as "FSSA") that overrides
all other food related laws.

FSSA initiates harmonization of India's food regulations as per international standards. It


establishes a new national regulatory body, the Food Safety and Standards Authority of
India (hereinafter referred to as "FSSAI"), to develop science based standards for food and
to regulate and monitor the manufacture, processing, storage, distribution, sale and import
of food so as to ensure the availability of safe and wholesome food for human
consumption.Entrepreneur may contact State Pollution Control Board where ever it is
applicable.
All food imports will therefore be subject to the provisions of the FSSA and rules and regulations
which as notified by the Government on 5th of August 2011 will be applicable.

Key Regulations of FSSA

A. Packaging and Labelling


B. Signage and Customer Notices
C. Licensing Registration and Health and Sanitary Permits

******************
BESAN PLANT

1. INTRODUCTION
Bengal gram is called Chickpea or Gram (Ciceraritinum L.) in South Asia and
Garbanzo bean in most of the developed world. Bengal gram is a major pulse crop in
India, widely grown for centuries and accounts for nearly 40 percent of the total
pulse production.

2. PRODUCTS AND ITS APPLICATION:-

BESAN is a product obtained by grinding, dried and decuticled Bengal Gram (L: Cicer
arietinum). Besan is a bengal gram flour widely consumed in India. It is yellowish in
colour and possess characteristic bengal gram taste and smell. Khesaru dal and other
colouring matter shall not be added to true besan flour.

3. DESIRED QUALIFICATION FOR PROMOTER:-

The entrepreneur must be aware of sourcing and trading of Bengal gram whole and
well versed with markets of besan for retail and bulk selling in India and abroad. The
manufacturing process can be understood easily after some runs but marketing skill
is must to sale besan in a competitive markets in India and abroad.

4. INDUSTRY OUTLOOK/TREND:-
Indian snacks and namkeen industry is growing at the rate of 10% per annum with increase
in urbanization, changing life style and growth in per capita income. Besan is rich in nutrition
and it is very common in Indian food preparations. The growth in demand is also due to
increase in population and rising exports of products made from besan.
5. MARKET POTENTIAL AND MARKETING ISSUES, IF ANY:

India is the major growing country of the world, accounting for 61.65 percent of the
total world area under Bengal gram during 2002 and 68.13 percent of the total world
production. Bengal gram is widely appreciated as health food. It is a protein-rich
supplement to cereal-based diets, especially to the poor in developing countries,
where people are vegetarians or cannot afford animal protein. The pulse proteins are
rich in lysine and have low sulfur containing amino acids. It offers the most practical
means of eradicating protein malnutrition among vegetarian children and nursing
mothers. Bengal gram has a very important role in human diet in our country.

India has exported about 12,000 tons of besan worth Rs. 7800 lakhs in year 2015-16
(APEDA) mainly to USA, UK, Australia, Kuwait, Canada, New Zealand, UAE,
Singapore, Saudi Arabia, Oman and other countries.

6. RAW MATERIAL REQUIREMENTS:

per day, Per Yr. in


tons 300.00 MT Per Annum

Qty./Yr.
INGREDIENTS Qty./Day tons Qty./yr. MT Rate/ton Rs. Lakhs

Whole Bengal Gram 37.50 11,250.00 11,250.00 56,750.00 6,384.38

Total 11,250.00 11,250.00 Rs. 6,384.38

Wastage @ 2% 6,512.06

Total Cost of Raw


Materials Rounding 6,512.06
7. MANUFACTURING PROCESS:-

Whole bengal gram delivered at the site are first physically cleaned and separated
from stone, dust, dirt and other foreign material. Cleaned material is conveyed
into soaking-cum-drying bins where it isconditioned with little water and dried by
blowing air to loosen its outer skin for separation. This process take about four
hours’ time. It is then subjected for spilting outer skin (husk) in a dal mill. The
spilt dal is again moisturized and conditioned for four hours. It is then subjected to
final milling to extract maximum percentage of flour the final milling is carried out in
emery roller machines. Thusobtained flour is further pass through battery of sieving
machines toobtained super fine grade and fine grade material. The husk separatedis
collected from other chutes, whereas other sieved coarse materialagain feed-back for
milling into roller machine. Finally, besan ispacked directly in gunny bags, poly-line
gunny bags for bulk selling and in laminated pouches or poly-bags for retail selling.

8. COST OF PROJECT:-

Costing Heads Qty. Rate/Unit Rs. Lakh

Land in Sq. M. + Expenses 800 1,000.00 8.00

Building 400 9,000.00 36.00

Plant & Machinery 43.69

Other Capital Investment 10.00

Contingency 5.00

Total Cost of Project 102.69

9. WORKING CAPITAL CALCULATION:-

Calculation of Working Capital

Particulars Total Stock Value of Promoter Promoter Bank


Amount Days Stock Margin Share Borrowings
Period
Raw Material 6,512.06 15 325.60 0.60 195.36 130.24

Packing Material 18.00 30 1.80 0.75 1.35 0.45

Work in Process 6,644.02 3 66.44 0.40 26.58 39.86

FP Stock 7,456.50 15 372.83 0.40 149.13 223.70

Bills Receivable 7,456.50 15 372.83 0.40 149.13 223.70

Working Expense 12.00 30 1.20 1.00 1.20 0.00

Total: 28,099.0 1,140.69 522.75 617.95


9

10. PROFITABILITY CALCULATIONS:-


Profitability calculations

Sr. No. Particulars Year 1 Year 2 Year 3 Year 4 Year 5

A Gross Sales 4697.595 5368.68 6039.765 6039.765 6039.765

Less:

1 Raw Materials 4558.442 5209.648 5860.854 5860.854 5860.854

2 Packing Material 12.6 14.4 16.2 16.2 16.2

3 Fuel 3.528 4.032 4.536 4.536 4.536

4 Power 7.056 8.064 9.072 9.072 9.072

5 Manpower 42.627 48.095 53.557 53.557 53.557

6 Depreciation 10.437 11.928 13.419 13.419 13.419

7 Sundry Expenses 4.2 4.8 5.4 5.4 5.4

8 Interest on Term Loan 4.921 5.624 6.327 6.327 6.327

9 Interest on WC Loan 7.875 9 10.125 10.125 10.125

9 Repairs & Maintenance 3.5 4 4.5 4.5 4.5

B Production Cost 4655.186 5319.588 5983.99 5983.99 5983.99

C Gross Profit (A-B): 42.409 49.092 55.775 55.775 55.775

Taxes @ 30% 12.7227 14.7276 16.7325 16.7325 16.7325

Net Profit 29.6863 34.3644 39.0425 39.0425 39.0425


The proposed unit will have the production capacity of 8100MT per year of besan. The unit
cost of power is taken at Rs. 8. The depreciation on building is taken at the rate of 5%
whereas for plant and machinery it is at 10%.

The average sales price of Besan is taken at the rate of Rs. 83,000 per MT for proposed
project.

11. STATUTORY/ GOVERNMENT APPROVALS

There is statutory requirement of FSSAI license for setting up of food processing industry.
Moreover, MSME& GST registration, IEC Code for Export of end products and local
authority clearance may be required for Shops and Establishment, for Fire and Safety
requirement and registration for ESI, PF and Labour laws may be required if applicable.
Entrepreneur may contact State Pollution Control Board where ever it is applicable.
CHAPTER :- 6

ANALYSIS OF THE PROJECT

Report Overview:
 The ‘Start up India, Stand-up India’ campaign was announced by the
honourable Prime Minister on 15th August, 2015 seeking to provide an impetus
to the entrepreneurial landscape of India. One of the key issues highlighted in
the Independence Day speech was the need to promote entrepreneurship
amongst women, Dalits and tribals.
 As per the 4th MSME Census (2006-07), only 5.2% of the total enterprises in
unregistered sector are owned by STs. This figure comes down to 2.9% in the
registered sector. The corresponding figures for women owned enterprises
are 9.1% and 13.7% respectively.
 According to the World Bank’s ‘Doing Business 2014’ report, India is ranked
134 out of 189 countries in the overall ease of doing business which takes into
account indicators such as, getting credit, getting electricity, paying taxes and
trading across borders, amongst others.
 The supply of credit to the MSME sector in 2012-13 has been short of the total
demand by about 59%. The Fourth Census on MSMEs points out that only
roughly 5% of total enterprises availed credit from financial institutions.

Importance
The initiative holds high importance due to the fact that start-ups are the next
job creating industry in the country. Presently, the manufacturing sector is
witnessing a slump and it will continue for longer period due to current global
economic condition and slowdown in China. The increasing automation also
reduces the potential of manufacturing sector to create more jobs. The
government’s idea of targeting start-ups as drivers of Indian economy in the
next decade has come at a right time.
Too much focus on technology and innovation
There is an issue with definition of a start-up. The present definition focuses on
technology and innovation. But there are many businesses that are marginally
dependent on technology and/or IP but if they solve a problem, they should also
be included under definition of start-up.
Regulatory Environment more crucial
The Indian start-ups, especially e-commerce firms, are already able to generate
enough capital. The government funding under the action could be directed
more towards entrepreneurs who find it hard to raise capital in segments such as
food processing. Tax breaks do help the start-up industry, but what is more
crucial is the regulatory environment that should encourage innovation and
entrepreneurship. Indian start-ups are shifting their base. For example, Flipkart
is registered in Singapore due to absence of enabling environment in India. And
also the simplification of rules and enabling environment should not be
restricted to just start-ups only. The other business sectors should also be
facilitated with similar environment.
The technical education funding is meagre
The technical education funding in India is still insufficient to promote
innovation at the universities and centers of technology. India is way behind of
China in terms of publication of original research papers by Universities. Thus,
launching of new scheme without involving university education may have
lesser impact.
The quality of technical education and motivation for research oriented study in
Indian universities are age old problem. The issue of lack of quality of technical
education and lack of quality graduates to match demands of industry has been
raised by some of the well known entrepreneurs of country.
Similarly, in schools where basic infrastructure and number of quality teachers
is still inadequate, how it will encourage innovation and learning to find
solution of industries?
Need to be careful of bad debts
The initiative although encourages new startups and ventures however provide
little to contain fraud and bad debt that may be arises due to poor
implementation of scheme.
The Stand-up India is different from the Start-up India campaign. Former is
related to new entrepreneurs while the later is a proposal restricted only to SC,
ST, and Women entrepreneurs.