1

FEASIBILITY REPORT
ON OPENING A JUICE
BAR SHOP IN
BATHINDA
SUBMITTED TO:-

SUBMITTED BY:-

Mrs. SHASHI AGGARWAL

HARPREET SINGH

( Lecturer)

CLASS:-MBA(IC) 9thSEM
ROLL NO:-617
SECTION:-B

PUNJABI UNIVERSITY
UNIVERSITY SCHOOL OF
BUSINESS STUDIES

TALWANDI SABO
INTRODUCTION:Juice is a liquid(drink) that is naturally contained in fruit and vegetables. A juice bar is an
establishment that primarily serves prepared juice beverages such as freshly squeezed or
extracted fruit juices, juice blends, fruit smoothies (or other juices such as fresh wheatgrass juice.
Sometimes other sold ingredients or nutritional supplements may be added as boosters, such as
fresh bananas, eggs, nuts or nut butter, bodybuilding supplements, soy protein powder or other
such as whey or hemp protein powers, wheat germ . also if less juice is usedwith these same
ingredients drinks called health shakes may be produced. I want to setup juice bar near a
yadwindra college, because near this area target customers are large, and we can earn a
maximum orofit

FEASIBILITY REPORT:OBJECTIVE:- To open a juice bar

CITY:- I am going to open a juice bar in Talwandi sabo
LOCATION:- Near Yadwindra College, Talwandi Sabo.
REASON FOR SELECTING TALWANDI SABO:

Presently there is no juice bar

Easily availability of raw material in talwandi sabo
Cheap rate of land
Cheep and easily available labor
Good transportation facilities are there

FEASIBILITY STUDY:-

Feasibility study is done to check whether the project which I am doing is worthwhile or not,
means whether or not it earn the profit. For analyzing this various analysis are done. So
feasibility study consists of basically three type of analysis.

FEASIBILITY STUDY CONSISTS OF BASICALLY THREE TYPE OF

ANALYSIS:1. MARKET ANALYSIS
2. TECHNICAL ANALYSIS
3. FINANCIAL ANALYSIS
Now, we discuss in detail these three type of analysis

1. MARKET ANALYSIS:i.
ii.

Present scenario of juice bar in Talwandi sabo

Present scenario of juice bar in Bathinda
MARKET SURVEY:

Survey of market location

Survey of potential of sale
Survey of raw material market
Outcome of market Analysis

For estimating the current market scenario, a survey was conducted. I included in my survey
there are five people who already do this business.
According to them the prospect of juice bar is good as firstly they provide the fresh and best
quality products to the customer.

Types and Quality of Products Marketed:A juice bar focuses on providing customers with fresh juice that is free additives. Such
establishments do not sell alcohol, only healthful beverages and various healthful concoction
filled with an abundance of vitamins. Juice bars is the juice drink itself. These type of juice

typically start with a common base, such as apple, orange or pineapple juice. Then, the juice
bar baristas mix the base ingredients with different combination of fruits and vegetables,
including regular fruits such as strawberries and bananas; tropical fruits such as mango and
papaya and vegetable such as beets, celery, carrots, spinach and kale.

INVESTMENT REQUIREMENT:Majority of them said that this is up to you how much big business you want to establish and
for setting up a small unit that included the small shop you need around Rs. 5-8 Lac.
LEGAL FORMALITIES:MACHINERY AND LABOR REQUIREMENT:The machinery, which is required for bakery shop is not much costly and we can buy it from
Bathinda. Both skilled and unskilled type of labor is required.
LOAN:We can get loan from any bank at 8% interestPRICING:They said that the price of the juice bar products normally depends up on the size and the
kind of products.

2. TECHNICAL ANALYSIS:Technical analysis is mainly concerned with:

Location and site:I am going to set up juice bar in Talwandi Sabo. The market, which I choose near
Yadwindra College.

Manufacturing Process:In the juice bar all the products are perishable. So the sales man cannot store the products for
a long time. In the juice bar many varieties are available for customer like apple, orange or
pineapple juice. Then, the juice bar baristas mix the base ingredients with different
combination of fruits and vegetables, including regular fruits such as strawberries and

bananas; tropical fruits such as mango and papaya and vegetable such as beets, celery,
carrots, spinach and kale.

Equipments needed in a bakery shop: Juicers

Centrifugal juicers
Masticating juicers
Triturating juicers
Refrigeration
Ice machine
Sinks
Dishwasher
Prep equipment

Labor Requirements:From the manufacturing process chart it is already clear that what of employees are required for
a juice bar required skilled labor, who have knowledge about the juices and juicer, that he can do
the work easily.

3. FINANCIAL ANALYSIS:PROJECTED INCOME STATEMENT

Capital invested = 4 lacs
Furniture purchase 125000
Bank loan 8% = 2 lacs
Other equipments-50000
Machinery 200000
Cash
- 125000

1st year
Sales
420000
Closing stock
40000
Total
460000
Expenses
20000
Opening stock Nil
Raw material 400000

2nd year
600000
60000
660000
280000
40000
540000

3rd year
780000
80000
860000
360000
60000
680000

4th year
1050000
100000
1150000
450000
80000
860000

5th year
1200000
140000
1340000
60000
100000
930000

purchases
Rent

of 25000

250000

25000

25000

25000

2000
6000

2000
8077

2000
10154

2000
12231

2000
16154

1000
3500
5000

1000
3500
5000

1000
3500
5000

1000
3500
5000

1000
3500
5000

103000

99211

199923

207634

496423

5938

5641

5358

5091

furniture
Dep on Motor 15000

13500

12150

10935

9841

Vehicle
Dep on plant 30000

27000

24300

21870

19683

and machinery
Profits before 51250

64773

157832

169471

461808

taxes
Interest on loan 16000
Profit before 35250

16000
48773

8000
149832

4000
165471

Nil
461808

tax
Tax @ 35%

17071

52441

57915

161633

building
Electricity Bill
Fixed
Variable
Telephone
charges
Fixed
Variable
Insurance
charges
Opening
profits
Dep

interest

on 6250

&

12338

Variable expenses varies on Sales.

Rent of Building 20000
Depreciation on Furniture is 5% on W.D.V. basis
Deprecation on plant and machinery is 10% on W.D.V

PROJECTED BALANCE SHEET

1st year

2nd year

3rd year

4th year

5th year

ASSETS
Cash in hand at 75000

84711

67711

67711

32711

bank
Debtors
131500
Investors
40000
Total
Current 246500

114000
60000
258711

206514
80000
354225

287707
100000
455413

686285
140000
858926

Assets
Fixed Assets
Furniture
118750
Motor vehicles
135000
Plant
and 270000

112812
121500
243000

107171
109350
218700

101813
98415
196830

96712
88374
177147

machinery
Total Fixed Assets 523750
Total Assets
770250
Owners Capital 522912

477312
736023
554614

435221
789446
652005

397058
852476
759561

362443
1221369
1059736

29409

52441

57915

161633

100000
52000
736023

50000
35000
789446

Nil
35000
852476

Nil
Nil
1221369

CURRENT

500000 Add profit

22912
Provision

for 12338

taxation
8% Secured Loan
Creditors
Total

200000
35000
770250

Repayment of Loan is Rs. 100000 at the end of 2nd year.

Repayment of Loan is Rs. 50000 at the end of 3rd year.
Nil at the fourth year

PRESENT VALUE OF CASH INFLOWS

Years
1st
2nd
3rd
4th
5th

Cash inflows
74162
78140
139482
145719
334790

P.V. @ 10%
.909
.826
.751
.683
.621

Present Value
67413
64544
104751
99526
207904

Cumulative Value
67413
131957
236708
336234
544138

Present value of cash inflows = Rs. 544138

DISCOUNT PAY BACK PERIOD:Payback period as a tool of analysis is often used because it is easy to apply and easy to
understand for most individuals, regardless of academic training or field of endeavor. When used
carefully or to compare similar investments, it can be quite useful. As a stand-alone tool to
compare an investment to "doing nothing," payback period has no explicit criteria for decisionmaking
The cumulative present value of cash inflows at the end of 4th year is Rs. 336234 and it is Rs.
544138 at the end of 5th year. Hence discounted payback period falls between 4 and 5 years. To
be exact,
Discounted payback period = 4 years & 163766/207904
= 4 years and 7 months
LIQUIDITY RATIOS:- It may be defined as the relationship between current assets and
current liabilities. A relative high current is an indication that the firm is liquid and has ability to
pay its current liabilities in time.
Years
Current Assets
Current Liabilities
Current Ratios

1st
246500
47338
5.2

2nd
258711
81409
3.177

3rd
354225
87441
4.05

ABSOLUTE LIQUID RATIOS:- It include cash in hand at bank.

4th
455418
42915
4.90

5th
858926
161633
5.31

Years
Cash
Current Liabilities
Absolute L.R.

1st
75000
47338
1.58

2nd
84711
81409
1.04

3rd
67711
87441
.77

4th
67711
42915
.72

5th
32711
161633
.20

LONG TERM FINANCIAL RATIOS

DEBT- EQUITY RATIOS:- It is also known as External-internal funds ratios to measure the
relative of outsides and the owner against the assets of the owner.
Years
Outsiders funds
Insiders funds
Ratio

1st
200000
522912
.38

2nd
100000
554612
.18

3rd
500000
652005
.076

4th

5th

759561

1059736

SOLVENCY RATIOS :- This ratios indicates the relationship between the total liabilities to
outside to the total assets of the owner.
Years
Total

liabilities

outsides
Total Assets
Ratios

1st
to 247338

2nd
181409

3rd
137441

4th
92915

5th
161633

770250
.32

736023
.24

789446
.17

852476
.10

1221369
.13

PROFITABILITY RATIOS
Operating profit ratios:- it establishes the relationship between operating profits and sales.
Years
Operating profits
Net sales
Ratios

1st
102500
5520000
.19

2nd
94211
700000
.13

3rd
199923
880000
.22

4th
207634
1060000
.19

5th
496423
1400000
..35

NET PROFIT RATIOS:- It establishments the relationship between net profit after taxes and
sales. It indicates the efficiency, higher the ratio, the better is the profitability position.
Years

1st

2nd

3rd

4th

5th

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Net profit after tax

Net sales
Ratios

22912
520000
.04

31702
700000
.04

97391
880000
.11

107556
1060000
.10

300175
1400000
.21

RETURN ON INVESTMENT: - It shows the relationship between net profit after interest and
taxes and the net worth of the owner.
Years
Net profit after

1st
22912

2nd
31702

3rd
97391

4th
107556

5th
300175

interest & tax

Net worth
Ratio

522912
0.043

554614
0.057

652005
0.149

759561
0.141

1059736
0.228

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CONCLUSION
At the end I would like to be concluded that establishing a juice bar will be a profitable business.
No doubt the project is having some weakness, but if the analysis has been done it shows that it
is profitable business to set the plant there. In spite of continuous increase in the consumption of
these items during last few years, the per capita consumption is still very low compared to the
advanced countries. There is, thus, good scope for these items.