Chilled RO Water

Plant
20 Liter Jar Water Plant

[Street Address] PH. 9967600078 Yogesh.dhandharia@gma

[City, ST ZIP Code] il.com
Table of Contents
I. Executive Summary...............................................................2
Highlights
Objectives
Mission Statement
Keys to Success
II. Description of Business.........................................................3
Company Ownership/Legal Entity
Location
Hours of Operation
Products
Suppliers
Manufacturing
Management
Financial Management
III. Marketing/Analysis................................................................5
Competition
Pricing
IV. Appendix................................................................................7
Start-Up Expenses
Determining Start-Up Capital
Cash Flow
Income Projection Statement
Profit and Loss Statement
Balance Sheet
Sales Forecast
Milestones
Break-Even Analysis
Miscellaneous Documents
Executive Summary

Write this last so that you can summarize the most important points from your
business plan.

Provide a concise but positive description of your company, including objectives and
accomplishments. For example, if your company is established, consider describing
what it set out to do, how it has accomplished goals to date, and what lies ahead. If
new, summarize what you intend to do, how and when you intend to do it, and how
you think you can overcome major obstacles (such as competition).

You can also choose to use the following four subheadings to organize and help
present the information for your executive summary.

Note: to delete any tip, such as this one, just click the tip text and then press the
spacebar.

Highlights
Summarize key business highlights. For example, you might include a chart showing
sales, expenses and net profit for several years.

Note: to replace the sample chart data with your own, right-click the chart and then
click Edit Data.

Financial Overview
$120,000
Sales
$100,000
Net
$80,000 Profit

$60,000

$40,000

$20,000

$0
2011 2012 2013 2014

Objectives
In Next 5 Years Aqua Bird to Supply water across all states of India

Mission Statement
Water is Life and Aqua Birds Mission is to Supply Sweet, Pure, Distilled and Germ Free
water to all the beings on this planet

CHILLED RO WATER PLANT - OCTOBER 2015 2

Keys to Success
Increasing scarcity of safe drinking water, changing lifestyles and Purified Water Market
growth @ 22% CAGR are the Keys that we have identified along with the Sales and Market
Experience that Aqua Bird possess will surely help us to Achieve Success in our Project.

Description of Business
Packaged Water industry is Growing at a Healthy rate of 15% CAGR and is expected to
grow by 22% in Next 5 Years. According to sources the demand of Packaged/Bottled water
is growing due to scarcity of safe drinking water, Fitness, Pollution contaminating available
water resources and Changing Lifestyle. Aqua Bird is aimed to play some role towards
fulfilling the local demand of Fresh Drinking water in short term and quench the National
thirst in the Long Term.

Aqua Bird as the name suggest is a Business of Aqua (Water) and Bird is a Sign of Flight to
the Sky, together they mean a Business of Water aimed to grow as high as the Sky with
Maintaining the Purity and Sanity. Aqua Bird has acquired complete knowledge of the
Industry by way of Internet, Discussing with Plant Manufacturers, Market/Industry Visit
and possess market experience resources in its Team.

The Local Market has a Potential of 6000 Jars of Bottled water per day, considering us to be
a new comer facing a Competition Aqua Bird plans to supply only 400 Jars per day which is
less than 10% of Market Share. Even at less than 10% Market Share the Profits are good
enough to support the Operation Cost and the Repayment of Loan.

At Aqua Bird we will supply Pure 20 Liter Bottled Water and 18 Liter Pure Chilled Water,
hence we will deploy A 1000 LPH RO Plant and A 450 LPH Chiller Plant. Aqua Bird plans to
start small hence we have taken a Target of Producing only 8000 Liters Per day which will
give us 400 Jars of 20 Liter Bottle which will be sold to Local Market only. As there is a
Significant Demand of Chilled water at a Higher price we plan to sell 200 Jars as Chilled
water out of the 400 Jars Produced this will ensure a healthy profit to Aqua Bird.

Company Ownership/Legal Entity

Aqua Bird is a New Startup Business. The Owner Ship will be established as a Partnership
Firm. The Company formation is in process as per the Company Act and all the Licenses
required to establish the firm is also currently under process. The Firm will be established
as a Manufacturing unit where the Final product will be Purified Mineral bottled water of
20 Liter Jars.

Location
Aqua Bird is currently in the process of finalizing a suitable location which should be in a
Commercial area with 800 Sq. ft. space for water plant unit and storage space. The area
would be situated in the center of Market so that we can easily supply the finished goods

CHILLED RO WATER PLANT - OCTOBER 2015 3

and the cost of transportation will be low. Initially we are planning to set up in rented
premises.

Hours of Operation
Aqua Bird plan to produce 8000 Liters of water which would need 8~9 hours of Operation
as per the plant operating Manual and our business requirement.

Products
Aqua Bird is a Manufacturing Plant which will produce 20 Liters Packaged water Jar as the
final product.

Suppliers
Aqua Bird is already in the process of Finalizing the Plant supplier, Jar Supplier and
transport supplier.

Manufacturing
Aqua Bird will be deploying 2 plants viz. RO water Purifying plant and Chilled water Plant.
We will use Bore well water or Reservoir water as Raw material for producing the final
packaged water, the process will be that the Feed water will be supplied to the RO plant at
1800 LPH where 60% i.e. 1000 LPH will be recovered as Finished product. The operation
will be for 8 hours to produce 8000 Liters out of which we will refrigerate 4000 liters using
the Chiller Plant. The Produced water will then be bottled in 20 Liter and 18 Liter Jars and
supplied to Market. Aqua Bird will touch 3 market segments viz. Wholesaler,
Corporate/Societies and Retail. Aqua Bird will be supplying to Local Market only hence we
will hire a Tempo for supplying the Final Products to the Market.

Management
Aqua Bird is formed by a Team of 4 Professionals which include 2 young and 2 senior
experienced people who will manage the operations, Accounting and Sales/Marketing.

Harish Agarwal - A Marketing Professional who has 15 years of Sales and Marketing
knowledge in wholesale, Distribution and Marketing. He has Handled multiple markets
including multiple product Portfolio's.

Yogesh Dhandharia - A Techno-Commercial Professional who has 15 years of IT, Sales and
Technical experience. He has handled customer relationship in term of Services and
Products.

Parmanand Agarwal - A business intensive senior professional who has 35 years of

Enterpreneur experience of handling multiple markets with multiple product portfolios. He
has experience in managing the Accounting and finance requirement of the Business.

CHILLED RO WATER PLANT - OCTOBER 2015 4

Umashankar Dhandharia - A business intensive senior professional who has 35 years of
Enterpreneur experience of handling multiple markets with multiple product portfolios. He
has experience in managing the Accounting and finance requirement of the Business.

We will hire 2 employees who will be primarily engaged for transportation of the finished
products to customer site.

Financial Management
Aqua Bird is a Startup Business and hence we plan to start with an initial capital of INR 10
lacs which includes onetime Machinery cost, licenses Cost and 6 Months Operational Cost.

This Project report is intended to borrow the Capital from a financial institution such as a
Bank. The Company plans to borrow the Money for a Period of 5 years with initial 6 Months
no EMI facility.

Post 6 Months the Business Forecasts a healthy profit which will enable to repay the Loan;
in case of any financial issues Company owners will pay the EMI from their current income
which is separate from the Business.

Marketing/Analysis
Aqua Bird has done some Market research and found that there are 3 Market Segments
that we would be targeting for our Business

Wholesalers - These are people who buy in volume at a wholesale price and supply to the
Retail Market.

Corporate/Societies - These are volume End User Segment who buy for their internal
consumption

Retail outlets - There are Medical and other similar shops who buy for their retail sales.

Aqua Bird has experienced marketing professionals and some existing customer base
hence we can easily achieve our target.

CHILLED RO WATER PLANT - OCTOBER 2015 5

 Local Market Growth
% growth over prior period 40%
Potential
35% Customers
30% New Homes
25% New Businesses
20%
15%
10%
5%
0%
2008 2012 2016

Market Segments

Discount; Elite;
20.00% 25.00%

Average;
55.00%

Competition
Aqua Bird will face competition from Bisleri, Bailey and other local brands, but as the
Market is of 6000, 20 Liter Jars per day, we are targeting less than 10% Market share
which will keep us safe from competition.

Pricing
Aqua Bird has already defined the Pricing policy based on Competition, Demand and
Profitability.

CHILLED RO WATER PLANT - OCTOBER 2015 6

Appendix
Start-Up Expenses
Business Licenses

Incorporation Expenses

Deposits

Bank Account

Rent

Interior Modifications

Equipment/Machinery Required:

Item 1

Item 2

Item 3

Total Equipment/Machinery

Insurance

Stationery/Business Cards

Brochures

Pre-Opening Advertising

Opening Inventory

Other (list):

Item 1

Item 2

CHILLED RO WATER PLANT - OCTOBER 2015 7

Determining Start-Up Capital
1. Begin by filling in the figures for the various types of expenses in the cash flow table on the following page.

2. Start your first month in the table that follows with starting cash of $0, and consolidate your cash out expenses from your cash flow
table under the three main headings of rent, payroll and other (including the amount of unpaid start-up costs in other in month 1).

3. Continue the monthly projections in the table that follows until the ending balances are consistently positive.

4. Find the largest negative balancethis is the amount needed for start-up capital in order for the business to survive until the break-
even point when all expenses will be covered by income.

5. Continue by inserting the amount of needed start-up capital into the cash flow table as the starting cash for Month 1.

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

Starting cash $0.00
Cash In:

Cash Sales Paid

Receivables

Total Cash In

Cash Out:

Rent

Payroll

Other

Total Cash Out

Ending Balance

CHANGE (CASH
FLOW)

CHILLED RO WATER PLANT - OCTOBER 2015 8

Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Starting cash

Cash In:

Cash Sales

Receivables

Total Cash Intake

Cash Out
(expenses):
Rent

Utilities

Payroll (incl.
taxes)
Benefits

Loan Payments

Travel

Insurance

Advertising

Professional fees

Office supplies

Postage

Telephone

Internet

Bank fees

Total Cash Outgo

ENDING BALANCE

CHILLED RO WATER PLANT - OCTOBER 2015 9

Income Projection Statement
The Income Projection Statement is another management tool to preview the amount of income generated each month based on
reasonable predictions of the monthly level of sales and costs/expenses. As the monthly projections are developed and entered,
these figures serve as goals to control operating expenses. As actual results occur, a comparison with the predicted amounts
should produce warning bells if costs are getting out of line so that steps can be taken to correct problems.

The Industrial Percentage (Ind. %) is calculated by multiplying costs/expenses by 100% and dividing the result by total net
sales. It indicates the total sales that are standard for a particular industry. You may be able to get this information from trade
associations, accountants, banks, or reference libraries. Industry figures are a useful benchmark against which to compare the
costs/expenses of your own business. Compare your annual percentage with the figure indicated in the industry percentage
column.

The following is an explanation for some of the terms used in the table that follows:

Total Net Sales (Revenue): This figure is your total estimated sales per month. Be as realistic as possible, taking into
consideration seasonal trends, returns, allowances, and markdowns.

Cost of Sales: To be realistic, this figure must include all the costs involved in making a sale. For example, where inventory is
concerned, include the cost of transportation and shipping. Any direct labor cost should also be included.

Gross Profit: Subtract the cost of sales from the total net sales.

Gross Profit Margin: This is calculated by dividing gross profits by total net sales.

Controllable Expenses: Salaries (base plus overtime), payroll expenses (including paid vacations, sick leave, health insurance,
unemployment insurance and social security taxes), cost of outside services (including subcontracts, overflow work and special or
one-time services), supplies (including all items and services purchased for use in the business), utilities (water, heat, light, trash
collection, etc.), repair and maintenance (including both regular and periodic expenses, such as painting), advertising, travel and
auto (including business use of personal car, parking, and business trips), accounting and legal (the cost of outside professional
services).

Fixed Expenses: Rent (only for real estate used in business), depreciation (the amortization of capital assets), insurance (fire,
liability on property or products, workers compensation, theft, etc.), loan repayments (include the interest and principal payments
on outstanding loans to the business), miscellaneous (unspecified, small expenditures not included under other accounts or
headings).

Net Profit/Loss (Before Taxes): Subtract total expenses from gross profit.

Taxes: Inventory, sales, excise, real estate, federal, state, etc.

Net Profit/Loss (After Taxes): Subtract taxes from net profit before taxes.

Annual Total: Add all monthly figures across the table for each sales and expense item.

Annual Percentage: Multiply the annual total by 100% and divide the result by the total net sales figure. Compare to industry

CHILLED RO WATER PLANT - OCTOBER 2015 10

 percentage in first column.

Annual Annual
Ind. % Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total %

Est. Net Sales

Cost Of Sales

Gross Profit

Controllable Expenses:

Salaries/Wages

Payroll Expenses

Legal/Accounting

Advertising

Travel/Auto

Dues/Subs.

Utilities

Misc.

Total Controllable Exp.

Fixed Expenses:

Rent

Depreciation

Insurance

Permits/Licenses

Loan Payments

Misc.

Total Fixed Expenses

Total Expenses

Net Profit/Loss Before

Taxes

Taxes

CHILLED RO WATER PLANT - OCTOBER 2015 11

 Annual Annual
Ind. % Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total %

NET PROFIT/LOSS
AFTER TAXES

CHILLED RO WATER PLANT - OCTOBER 2015 12

Profit and Loss Statement
This table essentially contains the same basic information as the income projection
statement. Established businesses use this form of statement to give comparisons
from one period to another. Many lenders may require profit and loss statements for
the past three years of operations.

Instead of comparing actual income and expenses to an industrial average, this form
of the profit and loss statement compares each income and expense item to the
amount that was budgeted for it. Most computerized bookkeeping systems can
generate a profit and loss statement for the period(s) required, with or without budget
comparison.

Profit and Loss, Budget vs. Actual: ([Starting Month, Year][Ending

Month, Year])
[Starting Month, Year]
[Ending Month, Year] Budget Amount over Budget
Income:

Sales

Other

Total Income

Expenses:

Salaries/Wages

Payroll Expenses

Legal/Accounting

Advertising

Travel/Auto

Dues/Subs.

Utilities

Rent

Depreciation

Permits/Licenses

Loan Repayments

Misc.

Total Expenses

NET PROFIT/LOSS

CHILLED RO WATER PLANT - OCTOBER 2015 13

Balance Sheet
Following are guidelines for what to include in the balance sheet: (For use in
established businesses)

Assets: Anything of value that is owned or is legally due to a business. Total assets
include all net values; the amounts that result from subtracting depreciation and
amortization from the original cost when the asset was first acquired.

Current Assets:

CashMoney in the bank or resources that can be converted into cash within 12
months of the date of the balance sheet.

Petty CashA fund of cash for small, miscellaneous expenditures.

Accounts ReceivableAmounts due from clients for merchandise or services.

InventoryRaw materials on hand, work-in-progress, and all finished goods (either

manufactured or purchased for resale).

Short-term InvestmentsInterest or dividend-yielding holdings expected to be

converted to cash within a year; stocks, bonds, certificates of deposit and time-deposit
savings accounts. These should be shown at either their cost or current market value,
whichever is less. Short-term investments may also be called temporary investments
or marketable securities.

Prepaid ExpenseGoods, benefits or services that a business pays or rents in

advance, such as office supplies, insurance or workspace.

Long-term InvestmentsHoldings that a business intends to retain for at least a

year. Also known as long-term assets, these are usually interest or dividend paying
stocks, bonds or savings accounts.

Fixed AssetsThis term includes all resources that a business owns or acquires for
use in its operations that are not intended for resale. They may be leased rather than
owned and, depending upon the leasing arrangements, may have to be included both
as an asset for the value and as a liability. Fixed assets include land (the original
purchase price should be listed, without allowance for market value), buildings,
improvements, equipment, furniture, vehicles.

Liabilities:

Current Liabilities: Include all debts, monetary obligations, and claims payable
within 12 months.

Accounts PayableAmounts due to suppliers for goods and services purchased for
the business.

Notes PayableThe balance of the principal due on short-term debt, funds borrowed
for the business. Also includes the current amount due on notes whose terms exceed
12 months.

Interest PayableAccrued amounts due on both short and long-term borrowed

capital and credit extended to the business.

Taxes PayableAmounts incurred during the accounting period covered by the

balance sheet.

Payroll AccrualSalaries and wages owed during the period covered by the balance
sheet.

Long-term LiabilitiesNotes, contract payments, or mortgage payments due over a

period exceeding 12 months. These should be listed by outstanding balance less the
current position due.

Net WorthAlso called owners equity. This is the amount of the claim of the owner(s)
on the assets of the business. In a proprietorship or partnership, this equity is each

CHILLED RO WATER PLANT - OCTOBER 2015 14

 owners original investment plus any earnings after withdrawals.

Most computerized bookkeeping systems can generate a balance sheet for the
period(s) required.

Note: Total assets will always equal total liabilities plus total net worth. That is, the
bottom-line figures for total assets and total liabilities will always be the same.

Assets Liabilities
Current Assets: Current Liabilities:

Cash: Accounts Payable

Petty Cash Notes Payable

Accounts Receivable Interest Payable

Inventory Taxes Payable:

Short-Term Federal Income Tax

Investment
State Income Tax
Prepaid Expense
Self-Employment Tax
Long-Term Investment
Sales Tax (SBE)
Fixed Assets:
Property Tax
Land
Payroll Accrual
Buildings
Long-Term Liabilities
Improvements
Notes Payable
Equipment
NET
Furniture WORTH/OWNERS
EQUITY/RETAINED
Automobiles/Vehicles EARNINGS
Other Assets:

Item 1

Item 2

Item 3

Total Assets: Total Liabilities:

Sales Forecast
This information can be shown in chart or table form, either by months, quarters or
years, to illustrate the anticipated growth of sales and the accompanying cost of sales.

Milestones
This is a list of objectives that your business may be striving to reach, by start and
completion dates, and by budget. It can also be presented in a table or chart.

CHILLED RO WATER PLANT - OCTOBER 2015 15

Break-Even Analysis
Use this section to evaluate your business profitability. You can measure how close you
are to achieving that break-even point when your expenses are covered by the
amount of your sales and are on the brink of profitability.

A break-even analysis can tell you what sales volume you are going to need in order to
generate a profit. It can also be used as a guide in setting prices.

There are three basic ways to increase the profits of your business: generate more
sales, raise prices, and/or lower costs. All can impact your business: if you raise prices,
you may no longer be competitive; if you generate more sales, you may need added
personnel to service those sales which would increase your costs. Lowering the fixed
costs your business must pay each month will have a greater impact on the profit
margin than changing variable costs.

Fixed costs: Rent, insurance, salaries, etc.

Variable costs: The cost at which you buy products, supplies, etc.

Contribution Margin: This is the selling price minus the variable costs. It measures
the dollars available to pay the fixed costs and make a profit.

Contribution Margin Ratio: This is the amount of total sales minus the variable
costs, divided by the total sales. It measures the percentage of each sales dollar to pay
fixed costs and make a profit.

Break-even Point: This is the amount when the total sales equals the total expenses.
It represents the minimum sales dollar you need to reach before you make a profit.

Break-even Point in Units: For applicable businesses, this is the total of fixes costs
divided by the unit selling price minus the variable costs per unit. It tells you how
many units you need to sell before you make a profit.

Break-even Point in Dollars: This is the total amount of fixed costs divided by the
contribution margin ratio. It is a method of calculating the minimum sales dollar to
reach before you make a profit.

Note: If the sales dollars are below the break-even point, your business is losing
money.

Miscellaneous Documents
In order to back up the statements you may have made in your business plan, you
may need to include any or all of the following documents in your appendix:

Personal resumes

Personal financial statements

Credit reports, business and personal

Copies of leases

Letter of reference

Contracts

Legal documents

Personal and business tax returns

Miscellaneous relevant documents.

Photographs

CHILLED RO WATER PLANT - OCTOBER 2015 16

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