Entrepreneurship

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Elevator Pitch

Taaza provides freshly procured, hygienically cleaned and packed vegetables at the lowest prices to retail chains chains can focus on their core competency in retailing while fresh vegetables are efficiently supplied by the Taaza supply chain typically procure from large farmers while Taaza procures from smaller
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Retail

Competitors

Vision and Mission Statements

Vision Statement: Taaza uses its efficient supply chain to create a pan India network of fresh vegetables procurement to deliver to customers in the most hygienic and economical way Mission Statement: Value in farm produce processing from supplier to consumer
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Market and Industry Environment

India is the worlds 2nd largest producer of vegetables with 31% of Indians being vegetarians (341 million) Presently, delays cause over 35% of the harvested vegetables to be wasted The farmers are exploited - a host of intermediaries reaping high profits Large retail chains procure from large farmers to achieve economies of scale

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Processing accounts for only about 5% of production and is expected to rise to about 15-20% in the long term (10 years) Retail food sector accounts for about $168 billion (2005) and small shops dominate 99% of sales

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1000 hypermarkets and 3000 supermarkets are operational

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Value Proposition, Key Products and Differentiation

Customers do not pay extra from what they currently pay now Get fresh, cleaned and cut Ready to Cook Vegetables for the neo housewife or single working professional

Retailers only need to stick their own price tags Farmers get 50% higher than market prices

Wastage in the supply chain minimal resulting in higher profitability 4/17/12

Competitive Scenario & Entry Barriers

Competitor Name Business Line Geography Representative Customers Strength Weakness

Samriddhi (PPP)

Fresh Vegetables sold in icecooled push carts Patna (Bihar) & Lucknow (UP) Retailers and direct consumers

Govt. support, Public trust, Absence of backward integration limiting the growth potential Huge capital and space requirement Getting confidence of farmers in our idea
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Business Model

Establishment of collection units in different villages all the procurement to Central Processing Unit the cleaned, packaged and processed vegetables to Retail outlets. aim is to reduce the role of middle men in the supply chain, achieving the the economies of scale and thus sharing the profit with farmers.
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Bringing

Delivering The

Sales/Marketing Strategy
Develop

ventures with regional co-operative association with farmers and retail

units
Farming

outlets
Packaged

/ Cleaned vegetables will be positioned as a ready to cut and cook vegetables. quality at affordable price. middle and higher income customers consumers will4/17/12 be given discount samples to retail outlets

Best

Target Free

Regular

Financials
Key assumptions: 1. All the produce is sold without losses 2. Each truck is fully loaded at a single collection centre 3. Inflation rate for salaries is 15% per year 4. Inflation rate for unexpected costs and sales is 50% per year

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Capital investment
Capital Investment
Collection Units 1 Rupees (Lakhs) 3 1 4 30 120 0.5 acre of land Shed / Office space Total cost per collection unit Total Number of CU's per state Total investment in CU's per state Central Processing Unit 2 acres of land Building Machinery and refrigerated storage Other infrastructure Total investment in CPU Allied Plant Cold Storage unit Drying and powdering unit Pickling unit Total investment for allied plant

400 200 100 100 800

50 25 25 100

Total Investment

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1020

Operations Cost
Date Commodity: 8/26/2011 Tomato Selling Price of Farmer (Rs per Kilo) Purchase Quantity (Kilos) Transport Costs@400 km (Profit) Miscellaneous Costs Cleaning and packaging costs (kg) Total Cost for 10,000 Kilos Cost per kilo (Rupees) Selling price including a profit of Rs Value to Us 10,000 Retail price was between Rs. 6.5 to Rs. 9.5 per kilo Existing Proposed Benefit Value to Farmer 1 1,500 4.12

1.5
15,000 8,150 3,000 15,000 41,150

50% 10% 36%

1,650

1.5

1.5

5.62

Total Profit per truck load of 10 Tonnes Value to Retailer Purchase price of Retailer (Rs per kilo) Total Cost incurred by Retailer including Transportation Cost 0.4 Selling price to customer (Margin) 17% 8% - 10% 4/17/12

15,000
5.62 6.02 7.04 70%

Future projections
Return on Investment
Profit per truck load per day No of trucks handled per day Total profit per day Total profit per year (330 days) Sales and advertising costs per year Unexpected costs Total Costs 2011 - 12 2012- 13 2013 - 14 15,000 10 150,000 15,000 15 225,000 15,000 25 375,000

74,250,00 123,750,00 49,500,000 0 0 2,500,000 3,750,000 5,625,000 5,000,000 7,500,000 11,250,000 11,250,00 7,500,000 0 16,875,000

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63,000,00 106,875,00

Thank you

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