Project Appraisal & Finance

Internal Assessment Component- 2

(Academic Year 2020-21)

Submitted By: Group 5

1) A Kusumitha Aishwarya 19MBAR0452

2) Alisha Khatri 19MBAR0016

3) Barsha Kandel 19MBAR0032

4) Bavithra R 19MBAR0571

5) Harsh Kandele 19MBAR0242

6) Neeraj Gautam 19MBAR0048

7) Sibika Gadia 19MBAR0399

Section: III MBA ‘IFA’

Topic: Mo-Mo Vending Machine

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Submitted To: Dr. Chaya Bagrecha

Faculty Signature:
 Mo-Mo Vending Machine

The machine would be able to serve hot momo right in front of the customer conveniently
where they would also be able to view the momo making process. Keeping the size of the
momo uniform customers would be able to customise the variety of stuffing they want.

Speciality:- Less work force, flexible in time(available 24/7) and quick service and
reasonable price , similar price compared to the competitors with higher benefit.

Growth:- As we have the first mover advantage, the growth can be huge because momo is
very preferable among teenagers as well as adults.

Our Momo vending machines is looking for to satisfy those customers who don’t have time
to go any where for lunch, but need a full meal offer. With the ability to serve hot momos
instantly we also offer customers a large selection of varities in momo platter that not only fit
their budget, but time allowance as well.

“From the choice of the ingredients to the extra care in the food preparation, in our pre-
cooked frozen meals, you will be able to taste all our experience and love for good food.”
 Market Analysis
Momo Vending machines are gaining immense popularity in current market and the appeal
among consumers is undeniable. Consumers want fresh and fast momo’s on demand and at
any time. Increasing numbers of gas stations, shopping malls, educational institutions and
other end-use sectors are boosting the market. Rising demand for automated devices, increase
in usage of wireless communication, rise in adoption of self-service machines, and
developments in technological and remote management are key factors driving the pizza
vending machine market. Technological advancement which is leading to cashless
transactions or enabling cashless vending machines to accept payments has made market
more attractive.

Furthermore, rise in disposable income and growing urbanization add to the demand of
healthy and fresh momo’s. Our customized momo’s platter will be easily available to the end
user in no time. Besides that, Frozen momo’s it will be supplied to the quick-service
restaurants, shopping malls along with the end- consumer.

There are no rivals operating in the market for the time being. Our vending machines are first
of its kind in Indian market. Hence, our marketing strategy will be “Market Penetration” with
low price, Customized and healthy Momo’s. Social media marketing, Electronic billboards
are some of the channels of marketing.

Moreover, market outlook suggests that Momo vending machine will be a great success.
 Social Analysis

Momo’s has become a part of everyone’s meal. It is a comfort food which is very much a
part of a diet as well. Be it family gathering, dry picnic or a day out with the close ones
momo’s are one of the mandatory food items. These stuffed dumplings (either veg or non-
veg) is preferred by all age groups and all income class people. Hence, many restaurants are
now awaking up to the popularity of this mouth-watering food and including them in their
menu with passion.

The way momo’s are prepared and served with the spicy chutney is too exquisite. That too
getting to see a live mom’s being prepared for you is quite heavenly. Hence our Momo
Vending machines are designed in such a way that it is easy to use by all age group people.
Likewise, keeping in mind the environmental factors our healthy and fresh momo’s will be
served in a disposable plate. And vending machines will be placed in safe and clean
surroundings. Hand Sanitizer and tissue papers will be readily available nearby our vending
machines.

When you’re in a hurry and all you want is a healthy and fast food then the only solution
available is our Hot and Healthy Momo’s.
LEGAL ANALYSIS: A. Kusumitha Aishwarya

Legislative factors include discrimination law, customer law, antitrust law,

employment law and health and safety law.

 As with any company, one must follow the regulations and laws
considering competition, product safety, advertising and labelling,
container deposits, environment protection, and labour practices.

 One country may be very lenient on environmental protection and

container deposit requirements, while another nation may be very strict
on those same requirements.

 Additionally, government regulations in various countries across the

globe restrict installation of beverage or food vending machines in places.
For example: If some schools and colleges reduce the demand for pizza
vending machines, then it would restrain the global pizza vending
machine market.

 It is the responsibility of the company to be aware of these different

legislation in order to avoid major lawsuits, which cost ample amount of
time and money.
Technological Analysis

Technological Analysis mainly focus on the technology that we will be using in our project.

Vending machine are portable in nature so these machine can be fixed anywhere i.e. flexible
in location i.e. they can be fitted both Indoor and Outdoor. It makes them ideal for use in
offices and commercial and public areas like gas stations, shopping malls, educational
institutions, and other end-use sectors. Vending machines are automatic machines that
dispense different products when money is inserted.

The machine also allows the customer to view the making process. The customer can view
the live process of mo: mo’s being cooked. The quantity that can be order at a time will be 5
or 10 pieces. Roughly, the capacity of the machine will around 2000 but we will be keeping
maximum 1000 pieces of the mo: mo during the initial phase of our business with the set of 5
and 10.

The Payments can be both cashless and cash based as per the customer wants. The payment
system is made easier for the customer. The customer can either use debit cards, credit cards,
or mobile payments or cash can be deposited.

Machine will have meat mincer for grinding of the meat and the automated machine to make
the mo:mo’s. Then those Mo: Mo would go for the steaming process. It will take maximum
10-15 minutes once the order is placed. There will be availability of the ketchup and the
Spicy Chutney.

There is availability of vending machine that provides Pizza, Burger but Mo: Mo vending
machine will the new in the market.
Financial Estimation and Analysis

Each Mo:Mo making cost Rs. 355000, vending machine cost Rs. 150000 and Freezer cost Rs.
25000. So, the cost of equipment can be shown in following table:
Equipment Name No. of Equipment Per Unit cost Total Cost
Mo:Mo Making 2 355000 710000
Mo:Mo Vending 10 150000 1500000
Freezer 4 25000 100000
Total 2310000

The production figure is shown with the help of following table:

Production Units
Production per Hour 2500 – 3000 pcs
Total Production per Hour 5000 – 6000 pcs
Working Hour 8 Hrs
Total Production per Day 40000 – 48000 pcs

For the financing of the project capital structure is 60% Equity from the team and the
remaining 40% from the debt, it can be shown as follows:
Sources of Fund Amount Weightage
Equity (Team) 1800000 60%
Debt (Term Loan) 1200000 40%
Total 3000000 100%

The fixed cost per month will be Rs. 300000 per month, which includes rent, transportation
and other miscellaneous and the variable cost are shown in the following table as:
Total Variable Cost Per day (Variable)
Flour (Wheat & Maida) 50000
Chicken 10000
Cabbage 4000
Onion 8000
Paneer 8000
Miscellaneous 20000
Total 100000
The following table shows the estimation of selling price and estimated revenue(per day
figures):
Selling Price (Per 10 Pcs) (in Rs.) Veg Paneer Mo:Mo Chicken
Mo:Mo Mo:Mo
Frozen Mo:Mo (3200) 40 45 55
Steam Mo:Mo (510) 50 60 75
Customized Mo:Mo (290) 60(+20) 70(+20) 90(+20)

Estimated Revenues (in Rs.) Veg Mo:Mo Paneer Chicken Mo:Mo Total
Mo:Mo
Frozen Mo:Mo 64000 45000 33000 155000
Steam Mo:Mo 12500 9600 7500 32750
Customized Mo:Mo 10500 7200 5000 25300
Total 54300 37000 121750 213050
 ENVIRONMENTAL ANALAYSIS

Environmental factors include temperature, food, pollutants, population

density, sound, light, and parasites. The diversity of environmental stresses that
have been shown to cause an increase in asymmetry is probably not exclusive;
many other kinds of stress might provide similar effects.

Vending machines are not very common in india are usually found only in
major cities or along some national airports . vending machines are used to sell
snacks , beverages , public transit tickets etc.

The factors as follows -

EN
GUARANTEED QUALITY
GREATER DISTRIBUTION
VERTISING
ENHANCED VISIBILITY

- COIN FRAUD
CUSTOMER RESISTANCE
LESS COMMUNICATION BETWEEN
CUSTOMER AND SELLER

-
RISK OF FAILING MACHINE LACK OF TECHNICAL KNOWLEDGE