Business Plan for Diet Kitchen

This project has been designed to establish a in-house diet kitchen unit at mysore. It is a Partnership firm proposed by sreelaksh
Contents
INTRODUCTION: -................................................................................................2
MARKT POTENTIAL: -.........................................................................................2
WHY US?...................................................................................................................2
ENTITY AND PROMOTORS PROFILE...........................................................3
PROJECT OVER VIEW: -......................................................................................5
FINANCIAL PROJECTION: -..............................................................................6
ANALYSIS OF RETURN ON INVESTMENT :...........................................12
INTRODUCTION: -
The world is full of different cultures, but one thing we all opt & wish to share is meals. Diet
& Healthy meals is always been the thought of a moment for all in this busy life. Having
healthy and diet meals ensures the growth in health conditions for all of us. We are not
hoteliers but we still can opt for it. We have taken this ethos to heart, and it is the driving
force behind our concept of this food business.
CATERING
It is the business of preparing & providing food service at a remote site or a site such as
a hotel, hospital, park, filming site or studio, entertainment site, or event venue. An event
catering provides food to the event party. The event catering is hired independently or can
be part of a package designed by the venue.

IN – HOUSE KITCHEN
Demand for in-house kitchen in Mysore city has remarkably grown in
the past decade. Serving P.G’s, Hospitals, Corporate Offices and
Individual Households for healthy and best quality foods with timely
delivery has been an emerging business in recent times.

Diet Kitchen
Often outside food are remarked as un-healthy and un-hygienic. To overcome
this, there has been existence of Diet foods and Hygienic ingredients. With the
use millets and other diet ingredients, the idea of Healthy Diet Kitchen may be
regarded as the first of its-kind and best in the industry.

MARKET POTENTIAL: -
Demand for healthy and hygienic food has always been the highest grosser in
the market. Timely delivery, usage of diet & healthy ingredients to the meals
is a promising industry for growth and incurring huge profits. Mysore being
the best city for developments and emerging as the fastest developing city in
India, it is the best market to serve healthy and hygienic food.

WHY US?
We partners being homemakers basically have a passion in cooking, we know
which are healthy ingredients and hygienic too in the usage of preparing
meals. One of the partner being successful in serving a hygienic food to her
P.G. customers, we are experienced and passionate to start an enterprise in
this food industry. The area/radius we have selected to serve is best known to
us and we being a familiar households, the potential for starting and
expanding the enterprise will not be a hard task. As homemakers we are
constantly caught up in the daily responsibilities of looking after our families.
Now we urge to serve the extended family(society) of us with the mission of
preparing healthy diet food.

ENTITY AND PROMOTORS PROFILE

Business Name MANVI’s Diet Kitchen
Location Mysore
Type of Organization
(Proprietary/Partnership/C Partnership Firm
ompany)
Nature of Business Catering
Name of the Proprietor Manvi S
Date of Birth of Promoter
Educational Qualification:
Work experience (Past &
15 Years
Present):
 To serve healthy & hygienic food.

 To be a Pioneer in the “In-house Kitchen

COMPANY‟S MAIN Catering Industry‟, by Delivering to the
OBJECTIVE Customers with diet & hygienic menu, Cost
Effective and Timely Delivery at the
doorstep.
 Variety of Low-fat/Healthy Breakfasts

 Diet Meals
DESCRIPTION OF THE
 Vast range of Menu to select
PRODUCT or SERVICE:
 Clean Packing

 Timely Delivery
  Corporate offices

 P.G’s

 Events/Occassions
IDENTIFICATION OF THE
CUSTOMERS:  Elderly households

 Hospitals

 Online Customers through Swiggy,

Zomato & etc

IDENTIFICATION OF THE  Online Food Delivery Portals

COMPETITION  Other Local Caterers & Restaurants

75 orders on average of Breakfast & Meals

per day
Year 1 – 22500 orders approx.
Year Wise Orders assumed
for 5 years Year 2 – 28500 orders approx with an
increase of 26.67%
Year 3 – 36000 orders approx with an
increase of 60% from 1st year

PROJECT OVER VIEW: -

(Rs. In
Cost of the project : Lakhs)
Particulars Total
Rental Deposit and Interior - Advance 1.50
Vessels & Electrical Items 2.00
Procurement of Packaging Materials 0.25
Procurement of Ingredients/Provisions (To serve for
Couple of months) 1.50

Rental Deposit for Delivery vehicle (at least 4 vehicles) 0.50

Subscriber charges for Online Portals & promotion 0.50

Total 6.25

Means of Finance :
Particulars Total
Proprietor Contribution 1.00
Term Loan from Bank /
Institution 5.25

Total 6.25

Debt Equity Ratio : 5.25

Debt Coverage Ratio : 4.22
Gross Profit Ratio : 24.17
Net Profit Ratio : 23.35
Employment Potential : 10
Return on Investment : 130.17
FINANCIAL PROJECTION: -
Assumption and workings note to the Financial
Statements of the Project Report:
1 Revenue
Printing of Pamphlet and magazine
Total orders estimated per day – 75
approx.
Average Sale value of each order : 125
9,
Total Sale value per day :
375
2,34,
Monthly Revenue (25 Days working) :
375
Yearly 28,12,
Revenue 500
Every year the Revenue is estimated to
increase by 10%.

2 Material Purchase Costs

The material is estimated to cost at 60% of sales price.
The cost for 1 year is 28.125*60% = 16.875 Lakhs

3 Depreciation:
Depreciation is calculated at the rates prescribed under
the Income Tax Act. Separate Annexure made

4 Interest:
Interest on term loan is calculated at 12% per annum
Term loan will be repaid in 5 year
STATEMENT NO.1
PROJECTIONS AND
In Lakhs
PROFITABILITY STATEMENT
Operating years
PARTICULARS
1 2 3
A.INCOME:
Income from catering services 28.13 35.63 45.00
(75*125*300)
28.13 35.63 45.00
B. EXPENSES:
Material Purchase Cost (60% of Sales value) 16.88 21.38 27.00
Salary (Rs.20,000 p.m with 15% Increase
2.40 2.76 3.17
every year)
Power Charges (Rs.1,500 p.m with 5%
0.18 0.19 0.20
increase every year)
Rental Expenses (Premises and Vehicle - 5%
increase per
2.40 2.45 2.50
year) Premises - 10,000 p.m +10,000
Vehicle)
Miscellaneous Expenses (Rs.3,000 p.m) 0.36 0.40 0.44
Promotion Charges (Rs.50,000 P.Y, 5%
0.50 0.55 0.60
increase per year)
Depreciation 0.30 0.26 0.22
Cost of Operations 23.02 27.98 34.12

C. Gross Profit [ A - B ] 5.11 7.65 10.88

D. Interest: on term loan 0.59 0.48 0.37

0.59 0.48 0.37

E. Profit before Tax[ C - (D+E) ] 4.52 7.17 10.51

F. Income Tax 1.36 2.15 3.15

G. Profit after Tax ( F-G ) 3.17 5.02 7.36

H. Depreciation added back 0.30 0.26 0.22

I. Cash Accruals ( H + I ) 3.47 5.27 7.57

J. Repayment of Term Loan 0.42 0.92 1.04

STATEMENT No.2

BALANCE SHEET
Operating Years
PARTICULARS
1 2 3

A. LIABILITIES :

Capital Account 1.00 1.00 1.00

Partners Current Account (3.00) (6.25) (9.75)

Reserves & Surplus 3.17 8.18 15.54

Secured Loan 4.43 3.52 2.48

TOTAL 5.60 6.45 9.27

B. ASSETS :

Fixed Assets 1.70 1.45 1.23

Current Assets - - -

Cash & Bank 1.90 3.00 6.04

Deposits 2.00 2.00 2.00

TOTAL 5.60 6.45 9.27

ANNEXURE NO.1

DEPRECIATION SCHEDULE:
WDV at the year end
PARTICULARS
1 2 3
2.0 1. 1.
1. Vessels 0 70 45
0.3 0. 0.
Depreciation @ 15% 0 26 22
1.7 1. 1.
WDV 0 45 23
Total Assets
1.7 1. 1.
[1+2+3+4] 0 45 23

Total Depreciation
0.3 0. 0.
[1+2+3+4] 0 26 22

ANNEXURE NO.2

BREAK-EVEN ANALYSIS
Years
PARTICULARS
1 2 3
A. Receipts 28.13 35.63 45.00

B. Variable cost: 23.02 27.98 34.12

D. Fixed costs:
Depreciation 0.30 0.26 0.22
Interest on Term Loan 0.59 0.48 0.37
0.89 0.74 0.58

E. Contribution [ B - C ] 5.11 7.65 10.88

F. P.V.Ratio [ E/B x 100 ] 18.17 21.47 24.17

G. Break - even [ Value ]

[ D / F x 100 ] 4.88 3.44 2.41

H. Cash Break Even 3.23 2.25 1.52

[ Without Depreciation]
ANNEXURE NO.3

(Rs.
in
INTEREST SCHEDULE : Lakhs
)
Particul Quart Openin Intere Intere
ars ers g Loan Closing st st
Repaym PER
Balance ent Balance QTR. P.A.

I 1 5.25 0.19 5.06 0.16

2 5.06 0.20 4.85 0.15

3 4.85 0.21 4.65 0.14

4 4.65 0.21 4.43 0.14 0.59

II 1 4.43 0.22 4.22 0.13

2 4.22 0.23 3.99 0.12

3 3.99 0.23 3.76 0.12

4 3.76 0.24 3.52 0.11 0.48

III 1 3.52 0.25 3.27 0.10

2 3.27 0.25 3.01 0.10

3 3.01 0.26 2.75 0.09

4 2.75 0.27 2.48 0.08 0.37

Interest on Term Loan is calculated at 12% per annum

NOTE : liquidated in
5 year
ANNEXURE NO.4

DEBT SERVICE COVERAGE RATIO :

Operating Years
PARTICULARS
1 2 3
A. SOURCES :

Profit after tax 3.17 5.02 7.36

0. 0. 0.
Depreciation 30 26 22

Interest on term loan 0.59 0.48 0.37

TOTAL OF ' A ' 4.05 5.75 7.94

B DEBT :

Term loan installment 0.82 0.92 1.04

Interest on Term Loan 0.59 0.48 0.37

TOTAL OF ' B ' 1.40 1.40 1.40

C Debt Service Coverage Ratio

DSCR [A/B] 2.89 4.11 5.67

D Average DSCR 4.22

ANNEXURE NO.5

ANALYSIS OF RETURN ON
INVESTMENT:

1. Return on Investment
= Average Return x 100
Capital Employed

2. Return Profit before tax + Depreciation +

= Interest on term loan

3. Capital Employed Cost of the

= Project

RETURN ON INVESTMENT:

OPERTING YEAR
PARTICULARS S
0 1 2

Profit before tax 4.52 7.17 10.51

Depreciation 0.30 0.26 0.22

Interest on Term Loan 0.59 0.48 0.37

5.41 7.91 11.09

# Average Return 8.14

# Capital Employed 6.25

# Return on Investment 130.17 %