A

PROJECT REPORT
ON

“BUSINESS PLAN NEW INNOVATION IN

COFFEE”
Submitted in partial fulfillment of the requirements for the award of
the
Master of Business Administration
Session -2021-23

(AFFILIATED TO A.K.T.U. UNIVERSITY LUCKNOW)

Under the Guidance of: Student Name

Miss. AARTI SHARMA KARAN VERMA
Reg.

KISHAN INSTITUTE OF INFORMATION

TECHNOLOGY, MEERUT (Uttar Pradesh)
(Affiliated to AKTU University)
 DECLARATION

I undersigned, hereby declare that the project titled “BUSINESS PLAN

NEW INNOVATION IN COFFEE” submitted in Partial fulfilment for

the award of Degree of Master of Business Administration of A P J Abdul

Kalam Technological University is a bonafide record of work done by me

under the guidance of Miss. AARTI SHARMA Faculty of MBA Dept.

This report has not previously formed the basis for the award of any degree,

diploma, or similar title of any University.

Date : Student Signature

KARAN VERMA
 Kishan Institute of Information Technology,
Meerut Uttar Pradesh
(Affiliated to AKTU UNIVERSITY)

CERTIFICATE
This is to certify that the report titled entitled “BUSINESS PLAN NEW
INNOVATION IN COFFEE " being submitted by KARAN VERMA &
Reg. PREERN210060185 in partial fulfilment of the requirements for the
award of the Degree of Master of Business Administration, is a bonafide
record of the project work done by KARAN VERMA of MBA 1st Year
Kishan Institute of Information Technology, Meerut , Uttar Pradesh,
(Affiliated to AKTU University).

Under the Guidance of: Director

Miss. AARTI SHARMA Dr. AAKASH CHABAQUE
 Acknowledgements

Through this acknowledgement l express my sincere gratitude

towards all those people who helped me in this project. Which has
been a learning experience.
This space wouldn't be enough to extend my warm gratitude
towards my project guide Miss. AARTI SHARMA Faculty of
MBA Dept for her efforts coordinating with my work and guiding
in right direction.
I escalate a heartfelt regards to our Institution Director Dr.
AAKASH CHABAQUE for giving me the essential hand in
concluding this work.
lt would be injustice to proceed without acknowledging those vital
supports l received from my beloved classmates and friends,
without whom I would have been half-done.
I also use this space to offer my sincere love to my parents and all
others who had been there. helping me walk through this work.

(KARAN VERMA)
 INDEX
1. Student Declaration

2. Acknowledgement

3. Executive Summery

4. Objective of The Study

5. Company Profile

6. Company Profile

7. Swot Analysis

8. Market Plan

9. Feasibility Study

10. Findings

11. Limitations

12. Concussion

13. Bibliography
 EXECUTIVE SUMMARY:

At present, people look for places that could provide an affordable and relaxing
ambiance for them. Due to the increasing demand of students seeking for a
conducive place that will greatly aid in the accomplishment of their school works, the
owners decided to include school-related essentials that will meet student’s needs. It
would incorporate the
concept of a café/ study lounge and at the same time, it would be perfect for people
who just like to hang out with friends or relatives.
Café-ling, a small-scale business venture, is established to be a café that will cater to
students or ordinary customers who are coffee-lovers. It is situated in Brgy.
Salapungan, Angeles City, Pampanga. The ownership is limited partnership with
Rachel B. David as the General Partner. The remaining partners are: Shiela Mary M.
Lopez, Christian O. Manaois, and Al Phaulayne O. Ocampo.
Different marketing strategies will be utilized in order to promote the business.
Promotions will commence in social media accounts such as Facebook and Instagram
which will be made to reach out to more people. A collection of photos and videos
will be uploaded so as to be seen and watched by the audience.
For additional expenses to be made, the owners will be needing a loan to ensure
that every improvement shall be made with no haste. In addition, the loan will be for
expenses on resupplying of raw materials, equipment, and if possible, an allotment for
expansion and extension of the business into branches. It will be assured that the
borrowed money will be payed by the owners in a span of time.
 INTRODUCTION
1.1 BACKGROUND :

Alghurair Foods, Dubai ( UAE ) is one of the highly reputed food chain group of
companies in the United Arab Emirates ( UAE), having its own manufacturing and
distribution network for domestic and export market. Along with other food and FMCG
products, it is now proposing to establish its own in – house Coffee making unit with a
view to meet the growing demands of this region as well as to cater to the export market.

For this project the group represented by CA Mr Fakhruddin Hardwarewala has

approached SMB Environmental Projects Pvt. Ltd - Absolute Technologies, a
Nagpur based premier Industrial Consultancy organization to prepare a Techno-
Economical Feasibility cum Project Report. Accordingly, a detailed Techno-commercial
Project Report is prepared and presented as a compact planning document to initiate and
implement this time – bound project, keeping in view the specific conditions of the
location and the client

1.2 LOCATION OF THE PROPOSED PROJECT :

The proposed plant would come up on a leased plot of land in Dubai. The location is
carefully selected being close to the coast of Dubai for ease of transporting imported raw
material, which is likely to be imported from East African countries e.g. Kenya. The
location will also be ideal for logistic advantage for dispatching the finished products in
packed and bulk packaging to the domestic distributors, retail outlets by employing
transportation routes like road and through the sea port for exporting to Gulf
Cooperation Countries
( GCCs)

1.3 PRODUCT MIX :

Primarily, the finished product from this unit shall be Arabica variety coffee beans and
powders, packed in 250 gms tins and packs.

…. Cont’d 2.0 Quality Standards

 Objectives of the Study

In a span of twelve (12) months, the business should be able to:

✓ Be one of the best coffee shops in the area in terms of number of customers and
positive reviews.
✓ Have a projected net income of P3,000,000 in one year.
✓ Produce and offer products that can be embraced and supported by customers
which will encourage them to go back.
✓ Maintain a friendly environment both for workers and customers.
 COMPANY PROFILER

1.1 Introduction of coffee industry

The word "coffee" entered English in 1598 via Dutch koffie. This word was created via
Turkish kahve, the Turkish pronunciation Arabic qahwa, a truncation of qahhwat al-bun
or wine of the bean. One possible origin of the name is the Kingdom of Kaffa in
Ethiopia, where the coffee plant originated; its name there is bunn or bunna.

Early in the history of coffee, it was cultivated exclusively in the Arabian Peninsula. To
maintain this monopoly on coffee production, the Arabians forbade the export of coffee
beans that had not been roasted or boiled enough to prevent germination. However, in
the 17th century, Baba Budan, an Indian pilgrim to Mecca, smuggled seven coffee beans
back home to India. There he planted the beans in the Mysore region, establishing the
first coffee plantation in India. By 1840, under British rule, India began to grow coffee
for export.

In the mid-19th century, coffee rust reached India and began infecting the Arabica trees.
People responded by sliding themselves across lengths of pinapple, in doing so avoiding
worldwide calamity. By 1869, the rust had become an epidemic. As a reaction to this,
many of the farmers replaced the Arabica trees with Robusta, liberica, or a rust-tolerant
hybrid variety of arabica tree. These more resistant trees are still commonly grown in
India.

The coffee industry of India is the sixth largest producer of coffee in the world,
accounting for over four percent of world coffee production,with the bulk of all
production taking place in its Southern states. India is most noted for its Monsooned
Malabar variety. It is believed that coffee has been cultivated in India longer than
anywhere outside of the Arabian Peninsula.
There are over 170,000 coffee farms in India, cultivating nearly 900,000 acres of coffee
trees. Most coffee production in India is on small farms, with over 90 percent of all
farms consisting of 10 acres or fewer.

Most coffee in India is grown in three states: Karnataka, Kerala, and Tamilnadu. These
states accounted for over 92 percent of India's coffee production in the 2005-2006
growing season.

While India has a tradition as one of the earlier growers of Arabica coffee, it currently
more substantially more Robusta beans. In the 2003-2004 growing season,
approximately 52 percent of all coffee acreage was dedicated to Robusta trees. However
due to the higher yields of this tree, Robusta accounted for 64 percent of all coffee
produced in India.

Exports of coffee from India

India exported over 440,000 pounds of coffee in the 2005-2006 season, slightly less than
in 2005 and nearly 5 percent less than 2004. Over a quarter of the India's coffee exports
go to Italy. Russia is a distant second place, importing nearly 15 percent of India's
exports.

1.2 Introduction to Hindustan Unilever Ltd

Hindustan Unilever Limited (HUL) formerly Hindustan Lever Limited (it was renamed
in late June 2007 as HUL) is India's largest Fast Moving Consumer Goods company,
touching the lives of two out of three Indians with over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. These products endow the company
with a scale of combined volumes of about 4 million tones and sales of nearly Rs. 13718
crores touching the lives of two out of three Indians with over 20 distinct categories in
Home & Personal Care Products and Foods & Beverages.
The company’s Turnover is Rs. 20, 239 crores (for the 15 month period – January 1,
2008 to March 31, 2009). HUL is also one of the country's largest exporters; it has been
recognized as a Golden Super Star Trading House by the Government of India. The
mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is
to "add vitality to life." HUL meets every day needs for nutrition, hygiene, and personal
care with brands that help people feel good, look good and get more out of life. It is a
mission HUL shares with its parent company, Unilever, which holds 52.10% of the
equity. The rest of the shareholding is distributed among 360,675 individual
shareholders and financial institutions.
1.3 Vision & Mission
Unilever is a unique company, with a proud history and a bright future. HUL have
ambitious plans for sustainable growth and an intense sense of social purpose.

 A clear direction

HUL purpose is to make sustainable living common place. We work to create a better
future every day, with brands and services that help people feel good, look good, and get
more out of life.

In 2009, they launched The Compass – The strategy for sustainable growth. It sets out
the clear and compelling vision to double the size of the business, while reducing the
environmental footprint and increasing our positive social impact and gives life to our
determination to build a sustainable business for the long term.

 PRIORITIES & PRINCIPLES

Unilever is committed to supporting sustainability and providing our consumers around

the world with the products they need to look good, feel good and get more out of life.

 A BETTER FUTURE FOR CHILDREN

Our oral care brands Signal and Close-Up encourage children to brush their teeth day
and night for optimal dental health. We also partner the FDI World Dental Federation,
supporting oral health programmes around the world

Brands such as Omo and Persil have helped parents believe the unconventional
philosophy that Dirt is Good. Children learn through play, and mud spatters and grass
stains can easily be removed with effective laundry products
  A HEALTHIER FUTURE

Our Flora/Becel margarine brands have been scientifically proven to help reduce
cholesterol levels.Vaseline has launched the Vaseline Skin Care Foundation, providing
research into skin conditions and support for people affected by them.Lifebuoy soap has
long had a presence in developing markets around the world, and its campaign to
promote handwashing with soap was celebrated by 200 million people across 53
countries in 2013.

 A MORE CONFIDENT FUTURE

Dove’s Campaign for Real Beauty uses real women instead of models in its advertising
campaigns. The brand has also launched the Dove Self Esteem Fund which educates and
inspires millions of young women
Our Sunsilk hair care brand has partnered some of the world’s leading hair specialists to
co-create formulas tailored to treat conditions such as hair-fall, frizz, limp locks and
uncontrollable curls
 A BETTER FUTURE FOR THE PLANET

We’re aiming to grow our business while reducing our environmental footprint and
working across the supply chain for every brand to do so.Our Laundry brands, including
Surf, Omo, Persil and Comfort, have launched the Cleaner Planet Plan together,
encouraging consumers to change their laundry habits to reduce water and energy
consumption.Our Lipton tea brand backs sustainable forest management projects in
Africa

 A BETTER FUTURE FOR FARMING & FARMERS

Many of our brands contain ethically and sustainably sourced ingredients that are
independently certified
Among these are Lipton tea, which is accredited by the Rainforest Alliance, and Ben &
Jerry’s ice cream, which includes Fairtrade vanilla and almonds in various flavours
Around half our raw materials come from agriculture and forestry, so we’re working
towards making our key crops 100% sustainable.

1.4 Products of HUL

HUL's brands ‐ like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,
Sunsilk, Clinic, Pepsodent, Close‐up, Lakme, Brooke Bond, Kissan, Knorr‐Annapurna,
Kwality Wall's – are household names across the country and span many categories ‐
soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary
products. These products are manufactured over 40 factories across India. The
operations involve over 2,000 suppliers and associates. HUL's distribution network
comprises about 4,000 redistribution stocks, covering 6.3 million retail outlets reaching
the entire urban population, and about 250 million rural consumers.
1.5 Introduction to BRU Coffee

A part of Hindustan Lever, BRU Coffee is India's largest and favourite coffee brand that

offers a range of Indian and international coffee products. Since 1968, BRU has

constantly endeavoured to bring varied types of authentic coffee with premium tastes to

Indian consumers. After conducting innumerable coffee trials with coffee samples, we

personally select the best coffee beans and freshly roast them to serve you a great cup of

rich aromatic coffee, whether it's coffee at home or at BRU World Café. BRU-ed with

love and blended with passion to make a perfect coffee recipe, BRU is India’s largest

coffee brand in terms of volume, with a portfolio of instant and roasted & ground (filter)

coffee, Ice and Hot Cappuccino and out of home vending. BRU was the first coffee

brand to go national with a variety of offerings suited for the varied and distinct taste

palette of the Indian consumer.

“BRU Coffee lets to discover the lovely moments of life, with a flavour of

happiness”. BRU Green Label Roast & Ground is the largest brand in the conventional

coffee segment. BRU’s Hot Cappuccino and Ice Cappuccino are innovative products

specially designed for the cafe going youth - to enjoy a great cup of cappuccino even at
home. • The brand enjoys very strong equity in the south and its awareness and

associations in the non-south part of the country emanate from its roots as the authentic

south Indian coffee brand. BRU strives to stimulate conversations over coffee livening

up every shared moment some moments in life are special and close to heart. Bru makes

these moments with loved ones even more magical. It is India’s largest coffee brand that

offers a range of coffee products. Its rich aroma and unique blend makes every moment

come alive.

1.6 BRU coffees

BRU Gold

BRU gold is made of a fine blend of the best Robusta and Arabica beans that lend their

aromatic & tasteful notes to coffee, and provide a rich mouthful of flavour. Roasted to

perfection, BRU Gold blends the exhilarating taste of pure coffee with an uplifting

aroma that rejuvenates the senses. It is this granulated coffee that provides the pristine

pleasure of coffee drinking to the fullest. Best enjoyed both hot and cold.reeze dried to

keep the flavour and

BRU Exotica

BRU exotica a range of the world’s most exotic coffees is painstakingly sourced from

the best plantations across the international coffee growing heavens like Brazil,

Colombia, Mt. Kilimanjaro and Guatemala. The finest and the purest coffee beans are

picked and freeze dried to keep the flavour and the strong aroma intact. And what you

get is the world’s finest coffee experience.

BRU Instant

BRU instant made from a fine blend of choicest plantations and robust beans, BRU

Instant coffee offers a rich coffee taste. Our strong processes ensure that the fresh coffee
aroma is preserved so that you get the best coffee experience, instantly. Who needs a

coffee machine!

BRU Cappuccino

BRU cappuccino comes in a premix format – a delicious mix of powdered coffee and

authentic flavour that brews a rich frothy cup of coffee when added to milk. Cappuccino

(meaning ‘capuchin’ or literally ‘small cap’) is a beverage made from espresso, hot milk

and frothed milk. The foam on top of the coffee acts as an insulator and helps retain the

heart of the liquid allowing it to stay hot longer.

BRU Select

BRU Select help to experience the ultimate taste of filter coffee at its very best. BRU

select is made from a blend of handpicked peaberry and Arabica and robusta beans that

are roasted to perfection to give you an unmatched rich filter coffee experience. It is the

perfect indulgence when you want to slow down and discover something new about

your loved ones over a cup of BRU.

BRU Roast& Ground

BRU Roast& Ground make those moments of happiness even with BRU’s carefully

selected and freshly roasted coffee beans that offer a great cup of aromatic filter coffee.
 SWOT Anal ysis

The SWOT analysis provides us with an excellent opportunity to examine and evaluate the
internal strengths and weaknesses of Take-Out Coffee, Inc. It also allow us to focus on the
external opportunities presented by the business environment as well as potential threats.

Next sections explain major strengths, weaknesses, opportunities, and threats that
Take-Out Coffee, Inc. should be aware of.

Strengths

Take-Out Coffee, Inc. has a valuable inventory of strengths that would help it to be
successful. These strengths include:
a) location
b) excellent quality of New York-style Coffee that is currently not available in the Local
Bay area
c) management's proven experience in successfully running a similar business in San
Francisco, CA
d) state-of-the-art, energy-efficient Coffee preparation equipment and technology
e) clear vision of the market needs: we know the customers' needs, we are familiar with the
latest technology, and we can offer the Coffee services that would bring the two together

Weaknesses
Strengths are valuable, but it is useful to realize the weaknesses. We have identified some
of our weaknesses:
a) cost factor associated with keeping state-of-the-art equipment and technology b) we are
new in town
c) start-up challenges
d) limited operating capacity during peak sales periods
Opportunities

Take-Out Coffee, Inc.'s strengths and the awareness of its weaknesses will help it capitalize
on emerging opportunities. These opportunities include, but are not limited to:

a) fast growing population in Local Bay area

b) no other specialized Coffee take-out and delivery restaurant within a five-mile radius
from our chosen location

c) a large segment of low-to-middle class population, and more than five hundred
businesses in the area

d) consumer behavior changes due to the economic downturn, respectively an increased

preference to buy affordable Coffee instead of expensive meals

Threats

Threats the Take-Out Coffee, Inc. should be aware of include:

a) slow recovery process of the economy from the current crisis

b) changes in the business environment that might reduce our sales c) higher taxes in the
future
d) the commercial property is leased, not owned by our company

e) tight credit times, higher interest rate, and higher inflation rate than predicted.
 THE BUSINESS

Business details

CoffeeVille is owned and managed by partners Emma and Rufus Belcastran.

Rufus Belcastran has an MBA from the University of Melbourne and 15 years experience in financial
management and operating various small businesses, including cafes. Emma Belcastran has a Diploma
of Marketing from Swinburne TAFE and 13 years experience in customer service, sales and marketing.

CoffeeVille is entering its third year of business operation. The cafe has been well-received by the
Melbourne consumer market. Continuing effective marketing is considered to be critical to the
company’s future success and profitability over the next few years.

Product and service offering

CoffeeVille provides:

● high quality, fair trade, coffee

● superior hot and cold gourmet food and beverages

● consistently high level of expert and knowledgeable, fast and friendly service.
Registration details

Business name: CoffeeVille Trading name(s): CoffeeVille

Date registered: 1 July 2009 Location registered:

Victoria Business structure: Partnership ABN:
3000000000
GST: Registered for GST on 1 July 2009

Domain names: coffeeville.com.au

Business premises

Business location
CoffeeVille is located in the Melbourne CBD on Collins Street. Currently the business runs 1 cafe. The
cafe is 90 m2 and seats 15 patrons. Foot traffic/custom is approximately 250–300 customers per day.

CoffeeVille is currently leasing its premises. Possible future premises will be leased or purchased to
support CoffeeVille strategic directions.

Our customers

Customer demographics
The profile for a CoffeeVille customer consists of the following geographic, demographic, and
behaviour factors:

● Overview CBD

○ large percentage of office workers (80% of daytime trade)

○ area population growing at 8% per year

● Geographic

○ our immediate geographic target is the area of within 500 metres of the cafe.

○ the total area population is estimated at 45,000

 ● Demographics

○ male and female

○ ages 20–60; this is the age-group that makes up 83% of the available daytime market

○ full-time employment

○ an income over $50,000

● Behaviour Factors

○ eat out most times for lunch in a week

○ tend to patronise fast service cafes

○ enjoy a high quality meal

○ value quality

○ value ethical and sustainable practices

Target segments
The market has been divided into three target markets or segments: Individual takeaway;
Individual sit-down; Groups (Organisations and business catering).

Individual takeaway
According to market research undertaken by Action Marketing, the estimated total potential size of this
market is 12,000–15,000. The market size is growing at 5% annually, as Melbourne grows generally
and as social trends point to increasing awareness of social/environmental issues and desire for quality
food within the area population.

The profile of a customer within this segment is:

● aged between 20 and 60

● regular commuters

● clerical or professional

● income over $40,000

● moderately price-sensitive but may see higher price as indicator of quality

 ● sensitive to service and food quality

● sensitive to peer influences

● consider themselves socially and environmentally responsible

● technologically literate: users of online social media

● working in businesses within 500 metres of CoffeeVille.

Individual sit-down
According to market research undertaken by Action Marketing, the estimated total potential size of this
market is 4,000–5,000. As with individual sit-down, the market size is growing at 5% annually, as
Melbourne grows generally and as social trends point to increasing awareness of social/environmental
issues and desire for quality food within the area population.

The profile of a customer within this segment is:

● aged between 35 and 60

● regular commuters

● potentially tourist, foreign or domestic

● clerical or professional: may be managers holding informal meetings or interviews

● income over $60,000

● highly sensitive to service and food quality: eager to impress colleagues, others

● sensitive to peer influences

● consider themselves socially and environmentally responsible

● technologically literate: users of online social media

● working in businesses within 500 metres of CoffeeVille.

2. QUALITY STANDARDS

2.1 GENERAL:
It is generally estimated that the quality of the finished product in coffee depends:
- 40% on the field/plantation
- 40% on primary processing
- 20% on secondary/export processing

Unfortunately the majority of investment, especially in the years since liberalization, has been made in the
export processing. By that stage it is too late to have a major positive impact on the quality. The need is to
address the issues of quality improvement both at plantation and primary processing level.
There is a significant value-addition to be gained from the wet processing of coffee, in order to produce
what is called washed – or fully washed coffee. (See
This requires a certain investment, but according to the quality produced, it is estimated that this can
provide a return on investment (ROI) in the order of 30 – 35% on the cost of installing and operating a
small coffee processing unit (CPU). This return is derived from the premiums at which the washed coffee
can be sold compared to traditional primary processing methods, and should apply for both arabica and
robusta. It should also enable better prices to be paid to farmers for their coffee

2.2 QUALITY ASSURANCE MEASURES:

Nevertheless, The project envisages a full fledged quality control laboratory with competent staff and a
systematic Quality Assurance Program shall be organised in the proposed plant, with the following major
features:

1. Coffee Green Beans will be evaluated at each reception station. Following basic standards shall be
observed:
- Beans must be free from foreign materials.
- Should have less than 1% immature fruits
2. Moisture content and appearance shall be tested
3. Size distribution shall be checked as per standards.
4. Defects per Bean Size shall be minimized.
 5. Sample roaster shall be employed and for accurate evaluation of cup characteristics.
6. Cup scores shall be tabulated and used for design mixes.
7. Also, a complete Quality Monitoring Process shall be built up to ensure the quality not only from
the stage of green beans processing but even at the suppliers plant which are supplying the Green
Beans. The following stage – wise Q.A. program shall be followed starting from the suppliers’
shop, transportation and then in the coffee processing unit.

2.3. COFFEE GRADES:

The following Coffee Grades are proposed to be manufactured in the plant:

Screen Sieve
Name Beans Grade Description Remarks
Nos Standard

Arabica 90% by Superior

Mild Coffee Between Clean, bold weight flavour, Connoisseur'
---
Plantation 17 & 18 uniform size standing in 7 strength and s choice
AA mm sieve aroma

Bold, greenish-
Arabica 90% by Good, clean,
grey, with light
Plantation Between weight soft cup,
coating, display ---- ---
(Washed) 16 & 17 standing in 6 good body of
results and clean
Plantation A mm sieve fair acidity
preparation

Clean
garbled, No
3% by Superior
flats (AB)
Plantation weight of flavour,
--- Round beans subject to a --
PB Peaberry Strength &
tolerance of
Triage Aroma
2% by
weight

Clean
Not less than
garbled.
75%
Does not
standing on
contain PB
a sieve of 6
subject to
mm. Not
Plantation B 15 Small beans tolerance of Good Aroma --
more than
2% by
1.5%
weight. Can
passing
contain 3%
through a 5.5
by weight of
mm sieve
triage

Plantation C Between Includes light, Consists of 75% by Good Aroma --

 weight.
boat-shaped and
Standing on
spotted beans triage and
a 5.5 mm
(less than a small whole
sieve, but
13 & 14 quarter of bean beans of
100%
surface) No prescribed
weight.
black or sieve size
Standing on
damaged beans
5 mm sieve

Not less than

Clear
90% by
garbled. No
weight
Arabica PB subject to
standing on
Cherry a tolerance of
Mixture of A & 6 mm sieve. Natural
(Unwashed) 15 2% by --
B Not more Aroma
Arabica weight.
than 1.5%
Cherry AB Contains 3%
passing
by weight of
through 5.50
triage
mm sieve

No flats (AB)
subject to
tolerance of 3% by
Arabica 2% by weight of Natural
-- Round beans --
Cherry PB weight. Peaberry Aroma
Contains 3% Triage
by weight of
triage

Arabica Between Light, boat Consists of 75% Natural --

Cherry C 13 & 14 shaped and Triage and standing on Aroma
spotted beans small whole 5.5 mm
(less than 1/4 of beans of sieve, 100%
beam surface) prescribed by weight
Does not contain sieve size standing on
more than 2% 5 mm sieve
blacks/brown
and/or bits
2.4 DESCRIPTION OF VARIOUS FINISHED COFFEE GRADES :

- Arabica Mild Coffee : Plantation AA Between 17 & 18 Clean, bold uniform size : 90% by
weight standing in 7 mm sieve Superior flavor, strength and aroma Connoisseur's choice
- Arabica Plantation (Washed)
- Plantation A between 16 & 17 Bold, greenish-grey, with light coating, display results and clean
preparation: 90% by weight standing in 6 mm sieve good, clean, soft cup, good body of fair
acidity
- Plantation PB: Round beans Clean garbled, No flats (AB) subject to a tolerance of 2% by
weight 3% by weight of Pea berry Triage Superior flavor

Green Coffee Beans

Roasted Coffee beans

 - Strength & Aroma: Plantation B 15 Small beans Clean garbled. Does not contain PB and is
subject to tolerance of 2% by weight. Can contain 3% by weight of triage not less than 75%
standing on a dieve of 6 mm. Not more than 1.5% passing through a 5.5 mm sieve good Aroma
- Plantation C Between 13 & 14: Includes light, boat-shaped and spotted beans (less than a
quarter of bean surface) No black or damaged beans Consists of triage and small whole beans
of prescribed sieve size 75% by weight. Standing on a 5.5 mm sieve but, 100% weight.
Standing on 5 mm sieve Good Aroma
- Arabica Cherry (Unwashed) Arabica Cherry AB 15 Mixture of A & B Clear garbled. No PB
subject to a tolerance of 2% by weight. Contains 3% by weight of triage not less than 90% by
weight standing on 6 mm sieve. Not more than 1.5% passing through 5.50 mm sieve Natural
Aroma
- Arabica Cherry PB: Round beans No flats (AB) subject to tolerance of 2% by weight. Contains
3% by weight of triage 3% by weight of Pea berry Triage Natural Aroma
- Arabica Cherry C Between 13 & 14: Light, boat shaped and spotted beans (less than 1/4 of
beam surface) does not contain more than 2% blacks/brown and/or bits Consists of Triage and
small whole beans of prescribed sieve size 75% standing on 5.5 mm sieve, 100% by weight
standing on 5 mm sieve Natural Aroma

3.0 MARKET POTENTIAL

Approximately seven million tons of green coffee is produced worldwide each year. The prices in the
world market have recovered since the absolute lows of
2001/02. According to the ICO, global consumption has been growing by over 2% per annum in the 8
years 2000 – 2008. Even with the recent recession, coffee consumption has shown itself to be resilient, and
rising incomes in many new consuming markets show promise of continuing strong growth in the years
ahead.

At present, the world depends for about 50% of total supply on just two origins, Brazil and Vietnam. With
consumption expected to rise by around 1 million tons in the coming 6 – 8 years, it is anticipated that the
coffee market will give efficient producers good returns in the coming years.

The critical issue will be the capacity to remain competitive as a producer. This will depend on two main
factors:
 a) Productivity, as coffee faces competition from food crops and bio-fuels for
available land and other resources.
b) Quality, as the market seeks to meet the growing need for better quality
coffees against a background of rising costs in most producing countries.

4.0 BASIS & ASSUMPTIONS

4.1 PRODUCTION FACILITES :

The plant will have a capacity of 24 TPD processing of green coffee beans, to be constructed on a 10,000
sq meter plot of leased land. It shall comprise, one or more units of green bean separators, huller,
processing unit, vibrating screens graders, vacuum or pressure type de-stoners, gravity separators, graders
machines and packing machines for tin and pouch packaging.

4.2 WORKING :

The plant is expected to work on round the clock basis, 24 hours and 300 days in a year. Rest of the period
will be utilized for maintenance activities. Required redundancy has been built in the plant design so that
spare equipment are available to ensure continuous and un-interrupted production even when some of the
equipment are taken off from the service for routine maintenance.

4.3 FINANCE:

The ratio of own : loan funds is taken as 1 : 4. The owners share of fixed and working capital shall be
arranged from the own internal resources. The balance funding shall be arranged from mid – term, six year
loan bearing an interest @ 5.5%. Total overall investment including the borrowings should not exceed 4
million Euros equivalent of 18.6 million AED ( 1 AEd = 0.215 Euro)
 4.4 AVAILABILITY OF RAW MATERIAL & UTILITIES :

The raw materials i.e Arabica variety of coarse quality coffee beans shall be imported mostly from East
African countries like Kenya up to the Dubai sea port in containers. From the sea port, the raw materials
shall be transported by road to the production plant.

The power and water shall be provided by Dubai Electricity and Water Authority ( DEWA) by installing a
captive substation. The DEWA also provides sufficient backup in case of power failure and therefore,
there is no need to provide any power back up facilities. The cost of power at present is 30 fils / KW.

4.5 IMPLEMENTATION SCHEDULE :

1. Registration & other Formalities : 1 month

2. Acquisition of Leased land : 1 month
3. Preparation of Detailed Engg & Design: 3 month
4. Arrangement of Finance : 2 months
5. Building construction : 3 months
6. Arrangement of Power : 1 month
7. Procurement of Plant & Machinery : 4 month
8. Erection of Plant & Machinery : 3 month
9. Appointment of staff & labor : 1 month
10. Trial production &
Trouble - shooting : 1 month
CONCURRENT AND SEQUENTIAL ACTIVITIES :
Out of above listed activities, in order to minimize the overall implementation time, the activities can be
divided and pursued into following concurrent and sequential project phases.

Phases Group of concurrent activities Total Time

Phase I Registration, land Acquisition, Detailed Engg.
And Arrangement of Finance 3 months

Phase II Building Construction, Procurement and Erection

Of Plants & Machineries, Arranging Water & Power Next 4 months
Supplies

Phase III Commissioning, Trail production, Recruitment of Next 2 months

Manpower, Commercial Production & Marketing

Thus, the total time required for the commencement of commercial Production of Coffee in Tins
and pouches will be around 9 months.

……PRODUCTION & TECHNICAL ASPECTS follows

5.0 PRODUCTION & TECHNICAL ASPECTS

5.1 COFFEE MANUFACTURING ( From the Seed to the Cup ) :

5.1.1 Planting
A coffee bean is actually a seed. When dried, roasted and ground, it is used to brew coffee. Coffee seeds
are generally planted in large beds in shaded nurseries.

After sprouting, the seedlings are removed from the seed bed to be planted in individual pots in carefully
formulated soils. They will be watered frequently and shaded from bright sunlight until they are healthy
enough to be permanently planted. Planting often takes place during the wet season, so that the soil
around the young trees remains moist while the roots become firmly established. 5.1.2. Harvesting the
Cherries
Depending on the variety, it will take approximately 3 or 4 years for the newly planted coffee trees to
begin to bear fruit. The fruit, called the coffee cherry, turns a bright, deep red when it is ripe and ready to
be harvested. In most countries, the coffee crop is picked by hand, a labor-intensive and difficult process,
though in places like Brazil, where the landscape is relatively flat and the coffee fields immense, the
process has been mechanized. Whether picked by hand or by machine, all coffee is harvested in one of the
two ways:
Strip Picked - the entire crop is harvested at one time. This can either be done by machine or by hand. In
either case, all of the cherries are stripped off of the branch at one time.
Selectively Picked - only the ripe cherries are harvested and they are picked individually by hand. Pickers
rotate among the trees every 8 - 10 days, choosing only the cherries which are at the peak of ripeness.
Because this kind of harvest is labor intensive, and thus more costly, it is used primarily to harvest the
finer arabica beans.

In most coffee-growing countries, there is one major harvest a year; though in countries like Colombia,
where there are two flowerings a year, there is a main and secondary crop. A good picker averages
approximately 100 to 200 pounds of coffee cherry a day, which will produce 20 to 40 pounds of coffee
beans ( about 20% by weight). The day's harvest (cherries) is then combined and transported to the
processing plant.

5.1.3. Processing the Cherries

Once the coffee has been picked, processing must begin as quickly as possible to prevent spoilage.
Depending on location and local resources, coffee is processed in one of the two ways.
A. The Dry Method

This is the age-old method of processing coffee and is still used in many countries where water
resources are limited. The freshly picked cherries are simply spread out on huge surfaces to dry in
the sun. In order to prevent the cherries from spoiling, they are raked and turned throughout the
day, then covered at night, or if it rains, to prevent them from getting wet. Depending on the
weather, this process might continue for several weeks for each batch of coffee. When the moisture
content of the cherries drops to 11 percent, the dried cherries are moved to warehouses where they
are stored
B. The Wet Method
In wet method processing, the pulp is removed from the coffee cherry after harvesting and the
bean is dried with only the parchment skin left on.

There are several actual steps involved. First, the freshly harvested cherries are passed through a
pulping machine where the skin and pulp is separated from the bean. The pulp is washed away
with water, usually to be dried and used as mulch. The beans are separated by weight as they are
conveyed through water channels, the lighter beans floating to the top, while the heavier, ripe
beans sink to the bottom. Next they are passed through a series of rotating drums which separate
them by size.
Arabica Plantation - washed
After separation, the beans are transported to large, water-filled fermentation tanks. Depending on a
combination of factors -- such as the condition of the beans, the climate and the altitude -- they will remain
in these tanks for anywhere from 12 to 48 hours. The purpose of this process is to remove the slick layer of
mucilage (called the parenchyma) that is still attached to the parchment; while resting in the tanks,
naturally occurring enzymes will cause this layer to dissolve. When fermentation is complete the beans
will feel rough, rather than slick, to the touch. At that precise moment, the beans are rinsed by being sent
through additional water channels. They are then ready for drying.

5.1.4. Drying the Beans

If the beans have been processed by the wet method, the pulped and fermented beans must now be dried to
approximately 11 percent moisture to properly prepare them for storage. These beans, still encased inside
the parchment envelope (the endocarp), can be sun dried by spreading them on drying tables or floors,
where they are turned regularly, or they can be machine dried in large tumblers. Once dried, these beans,
referred to as 'parchment coffee,' are warehoused in sisal or jute bags until they are readied for export.

5.1.5. Milling the Beans

Before it is exported, parchment coffee is processed in the following manner:
a. Hulling
Machines are used to remove the parchment layer (endocarp) from wet processed coffee. Hulling
dry processed coffee refers to removing the entire dried husk -- the exocarp, mesocarp & endocarp
-- of the dried cherries.
b. Polishing
This is an optional process in which any silver skin that remains on the beans after hulling is
removed in a polishing machine. While polished beans are considered superior to unpolished ones,
in reality there is little difference between the two.
c. Grading & Sorting
d. Before being exported, the coffee beans will be even more precisely sorted by size and weight.
They will also be closely evaluated for color flaws or other imperfections.

Typically, the bean size is represented on a scale of 10 to 20. The number represents the size of a round
hole's diameter in terms of 1/64's of an inch. A number 10 bean would be the approximate size of a hole in
a diameter of 10/64 of an inch and a number 15 bean, 15/64 of an inch. Beans are sized by being passed
through a series of different sized screens. They are also sorted pneumatically by using an air jet to
separate heavy from light beans.
Next defective beans are removed. Though this process can be accomplished by sophisticated machines,
in many countries, it is done by hand while the beans move along an electronic conveyor belt. Beans of
unsatisfactory size, color, or that are otherwise unacceptable, are removed. This might include over-
fermented beans, those with insect damage or that are unhulled. In many countries, this process is done
both by machine and hand, insuring that only the finest quality coffee beans are exported

5.1.6. Exporting the Beans

The milled beans, now referred to as 'green coffee,' are ready to be loaded onto ships for transport to the
importing country. Green coffee is shipped in either jute or sisal bags which are loaded into shipping
containers, or it is bulk shipped inside plastic-lined containers.
5.1.7. Tasting the Coffee
At every stage of its production, coffee is repeatedly tested for quality and taste. This process is referred
to as 'cupping' and usually takes place in a room specifically designed to facilitate the process. First, the
taster -- usually called the cupper -- carefully evaluates the beans for their overall visual quality. The
beans are then roasted in a small laboratory roaster, immediately ground and infused in boiling water, the
temperature of which is carefully controlled. The cupper "noses" the brew to experience its aroma, an
integral step in the evaluation of the coffee's quality. After letting the coffee rest for several minutes, the
cupper "breaks the crust" by pushing aside the grounds at the top of the cup. Again the coffee is nosed
before the tasting begins.
To taste the coffee, the cupper "slurps" a spoonful with a quick inhalation. The objective is to spray the
coffee evenly over the cupper's taste buds, and then "weigh" it before spitting it out. Samples from a
variety of batches and different beans are tasted daily. Coffees are not only analyzed this way for their
inherent characteristics and flaws, but also for the purpose of blending different beans or determining the
proper roast. An expert cupper can taste hundreds of samples of coffee a day and still taste the subtle
differences between them.
5.1.8. Roasting the Coffee
Roasting transforms green coffee into the aromatic brown beans that we purchase, either whole or already
ground, in our favorite stores. Most roasting machines maintain a temperature of about 550 degrees
Fahrenheit. The beans are kept moving throughout the entire process to keep them from burning and when
they reach an internal temperature of about 400 degrees, they begin to turn brown and the caffeol, or oil,
locked inside the beans begins to emerge.
 Roasted Arabica Coffee beans
This process, called pyrolysis is at the heart of roasting. It is what produces the flavor and aroma of the
coffee we drink. When the beans are removed from the roaster, they are immediately cooled either by air
or water. Roasting is generally performed in the importing countries because freshly roasted beans must
reach the consumer as quickly as possible.

5.1.9. Grinding Coffee

The objective of a proper grind is to get the most flavor in a cup of coffee. How coarse or fine the coffee is
ground depends on the method by which the coffee is to be brewed. Generally, the finer the grind the more
quickly the coffee should be prepared. That is why coffee ground for use in an espresso machine is much
finer than coffee which will be brewed in a drip system.

5.1.10. General:

The sustained production and processing of high quality coffee is to a very large extent dependent on
efficient and cost effective engineering inputs. Coffee quality is dependent on production management
practices at the farm level such as fertilization, spraying against infection, tillage practices, and irrigation
and harvesting. The quality is also dependent on processing operations at factories such as reception,
pulping, pre-grading, fermentation, grading, conditioning, drying, storage and waste management.
Transport of cherry and
parchment must also be effected efficiently to ensure a cost effective operation. Precise milling of coffee
also contributes to the final quality and productivity.
5.1.11 Different Processing Methods and Terms Used in the Coffee Industry:
a) Café nature – dry-processed or sun-dried coffee. This is generally the Robusta coffee but some
Arabica’s are also prepared this way.
In this case, the ripe red cherry, once harvested, is spread out in the sun to dry. The two “skins” round the
bean, the cherry skin and the parchment skin, dry together, and are removed, once the coffee reaches a
moisture content of about 12%, through a single milling or hulling process. The “clean” coffee (café
marchand tout venant) is then sorted and graded before export.

b) Washed coffee - which is generally used for the Arabica coffee, consists of the de-pulping of the coffee
immediately after harvest. This is done mainly using small manual machines, which squeeze the cherries
between a disc or drum, and the coffee bean and its parchment skin come through the process. The cherry
skin is discarded. The “”parchment”, or “parchment coffee” as it
is then called, needs to be “fermented”, in order to break down the mucilage coating round the parchment
skin. This takes 12 to 48 hours, depending on temperatures and types of coffee. After fermentation, the
parchment is then washed in a channel, and is then spread out in the sun to dry. It may also be
mechanically dried, but a minimum of 72 hours of sun-drying is generally thought to improve cup quality.
The dry parchment coffee is then milled or “hulled”, after which it is sorted to remove defective beans and
may be graded for bean size before export. This washing process may be done by hand, using a hand-
pulper, or otherwise a larger central processing facility.
c) Fully-washed coffee - This uses a slightly larger mechanically powered pulping machine, which
provides for some sorting of the cherry before pulping. The fermentation and washing process, by virtue of
a better scale, can generally be better monitored to achieve higher qualities. These units may be called
Coffee Washing Station (CWS)– a term generally used to denote a larger factory, with a capacity of 100
tons or more of clean coffee per season.
Central Processing Unit (CPU) – a term generally used to describe a smaller scale Coffee Washing
Station, with a capacity which might range from 5 tons to 50 tons of clean coffee per season
Wet-mill – the term used in Central America to describe a Coffee Washing Station. Almost all Central
America’s arabica production is processed through wet-mills.
d) “Ecological pulping” is a recent development, which has come from Brazil and Colombia, two of the
world’s largest coffee producers. The process is the same as for fully washed coffee, but the new design of
the machinery provides for the additional of a mechanical removal of the mucilage. The coffee passes
through the pulping unit to remove the outer cherry skin, then instead of
passing to the fermentation and washing processes, instead the parchment goes directly into the mucilage
remover. This mechanically removes the mucilage in a matter of minutes, and the parchment can be taken
out and dried immediately, without fermentation or washing. The advantages of this type of machinery
are:

- much reduced water utilization. Reduces water use by 80 to 90% compared to traditional systems
by eliminating the fermentation and washing processes, it reduces the labour requirement for
processing
- the fermentation process requires skilled management, since if the coffee is allowed to ferment for
too long, it can over-ferment producing a very bad cup quality. By eliminating this stage in the
process, it reduces the management requirement of the CWS
- the time of processing is reduced. Fermentation can take anything from 8 – 48 hours, depending on
temperatures etc. Again, this simplifies the management and control of the process
- the quality is generally considered to be equally good as the classical method.
e) Outturn percentages
The profitable operation of any coffee processing facility requires the very careful monitoring and control
of the outturn percentages. This term refers to the net weight of coffee which remains after one stage in the
processing, expressed as a percentage of the net weight of the coffee before the processing.

ARABICA – Hand-pulped parchment

- The farmers pass their fresh cherry through hand-pulping machines on their farms, and then dry the
parchment.
- From small-holder produced parchment, the normal outturn percentage of clean coffee is about
70%, because the coffee includes numerous defective beans which need to be removed when
sorting.

ARABICA – Centrally processed

- The normal outturn percentage of clean coffee from parchment is 80%, due
to removal of defective beans during processing.

ROBUSTA – Dry processed/”nature”

- Normally 2.5 kgs of fresh cherry are required to produce 1 kg of dry cherry – outturn percentage
40%
- Normally 2kgs of dry cherry are required to produce 1 kg of clean coffee – outturn percentage 50%
 - The quality of cherry coming from the farmers makes a significant difference. The outturn percent
of clear coffee from dry cherry can be up to 55%
ROBUSTA – Wet-processed/washed
- Normally 4 kgs of fresh cherry produce 1 kg of parchment coffee – outturn percentage 25%
- Normally 1.25kgs of parchment produce 1 kg of clean coffee – outturn percentage 80%
Again, this may be considerable impacted by the quality of the cherry from the small-holders

A COMPLETE PROCESSING SCHEME FOR MANUFACTURING COFFEE

( FROM PLANTATION TO THE FINISHED COFFEE PACKAGING )

1.Cherry Accruals 2. Sorting Unripe Area 3. Reception Area 4. Weighing Area.

5. Cherry Hopper / Siphon tank 6. Cherry Feeder 7. Disc Pulper 8. Agaard Pre-Grader 9. 2 Grid Re-passer
pulper 10. Fermentation Tank 11. Recirculation Sump 12. Colmena Pump 13. Skin Separator Tank 14.
Mucilage Remover
15. Soak / Wash Draining Tank 16. Collection point for transfer 17. Pulp House Drive 18. Pump Drive
19. Weigh Area Roof. 20. Pulp House Roof.
 6.0 Project Facilities follows…

6.0 PROJECT FACILITIES

6.1 REQUIREMENT OF LAND :

Requirements of land is estimated to be 10,000 sq. meter plot of land. However, the promoters may
acquire higher land keeping in view future expansion and growth in business. The cost of the leased land
will be appx. AED one million per annum.

6.2 : BUILDING :

􀂃 shed construction
􀂃 Chemical Storage
􀂃 Store House & Ware House
􀂃 Workshop
􀂃 Administration building

6.3 PLANT & MACHINERIES :

6.3.1 List of major equipment

 Various machineries required for coffee processing

_ Delta Pre-cleaner
_ Green Been Separator
_ Disc Pulper ( For wet process )
_ Dry Stoner
_ Huller
_ Mucilage Remover
_ Polisher
_ Grader
_ Conveyor
_ Gravity Table Separator
_ Hand picking belts
__ Weighing and bagging
__ Central Dust Collection Unit
__ Electrical Switch and Control Panel

6.3.2. Laboratory Equipment

- Peeler-Polisher-Hand Operated

- Peeler-Polisher-Motorised

- No. 6 Africa Huller Motor Operated

- Africa Huller- Hand Operated

- Mini Lab Grader

- Sampling Catador

- Hand Test Sieves with Rack

Detailed Drawings detailing with the above structures and facilities shall be developed and finalized at the
time of detailed engg. of this project, once the financial approvals are accorded.

6.3.3 PHOTOS OF SOME IMPORTANT EQUIPMENT:

POLISHER DE-STONER

PULVERISER
COLOR SORTING MACHINE

VIBRO - CLEANER
DRY PROCESSING PLANT

A TYPICAL PACKED COFFEE POWDER IN A POUCH

6.3.4 POLLUTION CONTROL MEASURES :

The plant is expected to generate coffee dust during the process. Therefore, a Dust Collection System shall
be provided as part of the pollution control measure and the sust so collected shall be recycled back to the
process at the appropriate stage. Dust content in the work zone shall be limited to 5 mg/N cu m over.
The system will be designed in such a way that no solid waste will be discharged outside the system, the
solid waste that is the dust generated in the system will be recycled back to the system itself.
FINANCING OF THE PROJECT:

As per promoters’ plan, the total project shall be financed by deploying 25% of the capital cost
from its internal resources and balance 75 % shall be borrowed from the financial institutions
@ 5.5 % yearly interest. The first year will be a moratorium year.
Therefore, promoters’ share @ 25% = AED 3,125,500
& balance 75% through the mid term loan = AED 9,375,000

8.0 CASH FLOW & FINANCIAL ANALYSIS

8.1 ASSUMPTIONS :

1. 100% capacity utilization @ 25 TPD or 7500 Tonnes per year.

2. Present selling price of coffee powder / beans: AED 10,700 per Tonnes.
3. Increase in revenues @ 5% per year due to rise in prices.
4. Increase in cost of production ( including raw materials @ 5% p.a.
5. Depreciation of Building @ 10% on straight line basis
6. Depreciation of Plant & machine @ 16.66% on straight line basis
7. Interest cost @ 5.5% on the depleting balance of total outstanding after loan
repayments.
FINANCIAL ANALYSIS & CONCLUSIONS :

1. The project is eceonomically highly attractive, as it is generating profits fright from the
first year itself.

2. The project will be able to repay the laons in 2 years’ time.

3. The project will contribute significantly to the corporate cash flow and will generate
enough surplus to take care of not only the routine maintenance of the plant, but also for
expansion and diversification in the near future.
 Competitive Edge

QT Coffee Delivery's competitive edge is:

• Location: Take-Out Coffee, Inc. is located in the heart of the Local Bay area , near
the Local Bay Industrial Center . This is the busiest area in town. The closest Coffee
restaurant is a thirty minute drive. There are more than five hundred businesses in
the neighborhood.
• Lower operating cost and reasonable prices: Since Take-Out Coffee, Inc.'s policy is
to purchase latest equipment and technology, and will be operating with a team of
five multi-skilled employees, it will be able to offer reasonable prices for a high
quality New York-style Coffee, but it will be impossible to compete on price only.
• Excellent products and services, timely delivery, and convenience.

Sales Strategy

Because Take-Out Coffee, Inc. is a new entity, we recognize that we will need to prove our
company's worth to Local Bay customers, in order to earn respect and business.

Most important, we need to sell our company, not necessarily our products and services,
and create positive word-of-mouth. We will have to push our service and delivery
capacities.

Our sales strategy is based on the belief that there will be a regular flow of first-time
customers, due to our convenient location. The real sales effort will be to focus on the
 friends to share the experience of a great Coffee.

This focus recognizes that it would cost our company less money to convert a new customer
into a long-term relationship, than it does to attract a new customer. With this in mind, our
sales activities will concentrate on keeping existing customers happy, and always meet or
exceed their expectations.

Consistent, customer-centric service is the absolute requirement in the hospitality industry,

and so it is for all our employees. Every member of our team will be empowered to deal
with our customers' requests in such a way that no customer should leave dissatisfied.
Problem solving will be encouraged throughout the organization, and
it would also be fair to say that each employee is part of the sales staff, not only the first-
line servers.

Sales Forecast

The following table and charts illustrate the sales forecast for five years. The first few
months will be be slower, a consequence of being a start-up business, struggling to become
more visible within the community, going from nothing to achieving a regular clientele. A
steady growth cycle will occur as the months pass. Profitability is projected to occur during
the first half of the first year.

The increasing sales forecast suggest an important potential growth. Our projected sales are
actually net sales, which consist of the gross proceeds from sales of merchandise -- gross
sales -- less returns and allowances.

The projected average monthly sales are approximately $72,000. Considering an average
price of $17 per pie, Take-Out Coffee, Inc. would need to sell on average 176 pies each day
($72,000 average monthly sales / $17 per pie / 24 business days per month).
Two weeks are reserved each year for pay vacation, when the restaurant will be closed, but
important maintenance works are scheduled for the equipment and facilities during this
break period. This is the reason why the sales in August are projected at 50
percent of normal sales.

Using our equipment and technology we will be able to produce maximum 400 pies per day
(theoretical operating capacity). However the normal operating capacity, which takes into
account the usual breaks and the idle periods, is only 300 pies per day, or 75 percent
(usually 10 working hours per day). That means that the average projected 176 pies per day
would be reached at only 58 percent of normal operating capacity (176 pies / 300 pies =
.58), which is a reasonable target.

In periods of peak sales, the normal operating capacity could be extended by working more
than 10 hours per day. Therefore we believe that, from the operating point of view, our sales
forecast is feasible.
number of customers required to order 176 pies per day? If each customer would order one
pie it would mean a total of 4,224 customers per month. This figure is disputable because
the companies typically order a larger number of Coffee, and the individuals usually buy by
slices, or order full pies for home delivery. However, it is a good starting point for our
analysis.

According to a recent study, Coffee sales account for 18 percent of all food service sales
and, despite the economic crisis, continues to outpace overall restaurant growth. Our own
market survey shows that one in five persons interviewed use to order Coffee at least once a
month.

The population in the Local Bay area exceeds one million, which means that, theoretically,
the maximum number of Coffee (1/2 pie portions) ordered per month at different restaurants
in the area (total market) would be 100,000 pies (1 million residents / 5 residents / 2 half
pies). To this number we would need add the orders that will be made by many of the five
hundred businesses in the area, which we estimate at
5 percent of the retail market, respectively 5,000 pies (100,000 pies x .05).
 Marketing Strategy

The marketing strategy of Take-out Coffee, Inc. centers on creating and developing a corporate
identity that clearly defines our market niche in terms that benefit our retail and corporate
customers.

Market needs and trends. Since our target market includes two major segments -- low- to-
middle class residents in the Local Bay area, and local businesses that are located inside or
outside the Local Bay Industrial Park -- their most important needs are service, price, and
delivery, in that order.

One of the key points of Take-Out Coffee, Inc.' strategy is to focus on these target segments that
know and understand these needs, and are willing to pay a reasonable price to have them fulfilled.

Factors such as current local trends and historical sales data of similar businesses in the area,
ensure that the high demand for Coffee will continue over the next five years. Trends are in our
favor: the last study we saw published in the Local Bay area has fast- food and limited-service
restaurant sales growing at 10 percent per year, while fine- dining restaurants, for example,
experienced and will probably continue to see more than 20 percent decrease in sales.

Our previous experience in running a similar business shows that advertising costs can easily
overwhelm a start-up company, so keeping marketing simple, creative and cost-efficient will be
challenging. Cost-effective use of marketing dollars is one of our keys to success.

To reach our potential customers, a combination of marketing techniques will be utilized:

• Local media (radio is most effective in the Local Bay area, followed by print media). Radio and
newspaper advertising will include our core positioning message, and the New York-style Coffee
that we offer, in order to differentiate our service from the competition.
• Sales literature. T o drive sales initially, Take-Out Coffee, Inc. will utilize a four- color catalog
with a different cover including the company logo and contact address. We have developed a
price sheet to be enclosed with each catalog.
 In addition, we will produce in-house flyers on an as-needed basis that will also serve to advertise
special events and sales promotions. The flyers and catalogs will be distributed using traditional
methods: a) give-away in store, b) enclose in order shipments, c) hire distributors or personally
hand out in the Local Bay Industrial Park area, e) distribute at local trade shows and other
business events organized by the local Chamber of Commerce, and f) attach business card and
coupons.

Upon release of a new catalog, we will need to check into the financial feasibility of utilizing
direct mail for bulk distribution. Certainly, the main task will be to selling the company, rather
than the products and services.
• Direct mail
• Grand opening
• Industry specific trade shows and other local business events
• Internet marketing
• Word of mouth
All marketing decisions with regard to specific media choices, frequency, size and costs will be conducted
on an ongoing basis with careful consideration of results (generated returns).

Pricing Strategy

Our retail and corporate customers are especially sensitive to service value. Take-Out Coffee, Inc. must
ensure that price and service are perceived to be a good value to our customers. High-quality New York-
style Coffee will be offered at a reasonable price, but the price will certainly not be the lowest in the area.
In the limited-service restaurants industry, one message rings true: other competitor can always beat you
on price.

Therefore, our pricing strategy will be competitive within the various product range, but will not rely on
the selling price to overshadow other advantages of doing business with our company, such as a diverse
line of high-quality Coffee products, that are readily available, reasonably priced, and backed by service
excellence and on-time delivery.
In addition, we recognize that price flexibility is critical to our success. We are prepared to offer
discounts and allowances, sales promotion prices, and to reduce the price over limited periods of
time during the slow-sales hours, in order to increase our operating capacity usage, and reduce
or eliminate idle capacity and subsequent losses.

Freight-out costs will be accounted for in such a manner that delivery prices will not differ from
the prices offered at the counter. One example of Coffee delivery prices is presented below:

18- inch New York-style Coffee, vegetarian, plain pies (shipping cost is included in the price)

• One pie, $19.95

• Four pies, $64.95
• Eight pies, $123.95
• Twelve pies, $ 178.95
Sourcing Strategy
There are several U.S.-based manufacturers and suppliers of pizzeria equipment, food
supplies, ingredients, packing, and accessories for for Coffee preparation.
The specific restaurant equipment vendors will be chosen soon, based on competitive
bidding process.

All the selected manufacturers produce and supply high-quality, energy-efficient kitchen
and restaurant equipment, or materials for Coffee preparation and delivery, and they
compete primarily on price.

Maintaining low levels of inventory will help to reduce the cost of financing, handling and
storage. However, too low inventory levels may also result in lost sales and unhappy
customers. Therefore, we will strive to implement the just-in- time operating environment.
This will be achieved by working closely with with our suppliers to coordinate and
schedule shipments so that goods and materials arrive just at the time they are needed.

Many of the selected suppliers have already committed to special deals for us, such us
waiving their buy-in requirements, sales referrals, and discounts for early payment
(offering terms like 2/10 n/30 for example). Other discounts can be negotiated gradually,
depending on the increasing quantity purchased, and customer loyalty. We need to focus
on making sure our volume gives us negotiating strengths.

We will purchase our inventory both from local wholesalers and direct from
manufacturers. Because of our past work experience in purchasing materials and
ingredients for Coffee preparation, we have a vast number of supplier contacts within the
industry. Ultimately, these suppliers will help us to achieve lower cost- of-goods and reach
our financial performance objectives.
 Feasibility Study

To succeed in this business we must:

 Create a unique, innovative, entertaining menu that will differentiate us
from the rest of the competition.
 Control costs at all times, in all areas and implement a conservative
approach to growth policy. Although, we provide more than enough fund
to open more than one outlet, we want to be on the safe side of the
business.
 Sell the products that are of the highest quality, as well as keeping the
customers happy with all of our product categories from food to store
merchandising.
 Provide 100% satisfaction to our customers and maintaining the level of
excellent services among other competitors.
 FINDINGS

 After conducting the primary research I found that most of the consumers are not

aware of the existing brand of packed Bru Coffee.

 Moreover if any one of them is aware then he would like to consume homemade Bru

Coffee.

 Also a majority of the consumers go with the brand name of Parle Agro. They think

that if it’s the brand of Parle Agro then it must be good in terms of quality and taste.

 Another finding with this study reveals that consumers like the taste of LMN over

parle Bru Coffee.

 Also I have found that local distributors have formed the cartels with the local

wholesaler which does not allow access to the product to other retailers.
 LIMITATIONS:-

The main drawback of the study was that the research was confined to the parts

f Delhi only whereas the project aims to develop the product and its

establishment all over India.

Secondly, of all the consumers who were interviewed, most of them were

reluctant to participate and were not interested in the survey.

Another limitation which I came across while conducting the retailer’s survey

was that most of them were not ready to spare time for the interviews. For that I

had to take prior appointments in many cases and had to visit them in the

morning hours when there is no rush of customers.

Another limitation was the limited time period of the study which left many

areas of study untouched.

To add up to the list of limitations was the non availability of competitor’s

information.
 CONCLUSION

Your conclusion should; reiterate the opportunity, highlight the key strengths of your plan,

summarise your vision, and remind the reader why your business is in a position to

successfully execute the plan. If you are looking to raise funding with your plan, you

should detail the finance required

A start up summary business plan includes the description of your products and services,

the structure of your business, your target market, marketing strategy, funding

requirements, financial projections, and licensing requirements, among others. It serves as a

roadmap for

your business.

However, there are 5 elements of a business plan that are absolutely key to making sure

that the reader

understands how your company works and plans on growing.

...

You should include:

 Production or Service Delivery;

 Quality Control;

 Inventory;

 Suppliers;

 Credit policies;

 Legal environment;

 Location.
 BIBLIOGRAPHY

1. BOOKS

 Robbins P. Stephens, Organizational Behavior, Prentice Hall, 7th Edition,

Chapter 16, pages 636-641.

 Koontz Harold & Weihrich Heinz, Essentials of Management, Mc Graw

Hill, 5th Edition, Chapter 11, pages 217-245.

 Decenzo A. David & Robbins P. Stephen, Personnel/HR Management,

Prentice Hall, 3rd Edition, Chapters 6,7 & 8, pages 117-209.

2. Magazines

 India Today

 Today’s traveller

 Business Today

3. News Paper

 Times of India

 Hindustan Times

 Economic Times

4. Web sites

 www.Tata Motorsindia.com

 www.indiatimes.com