Project report for Street Food Industry

Introduction

On the basis of promising trends and significant investments, the Indian fast food industry has seen steady growth. The growing youth population, working mothers, hectic schedules, and the disposable income of middle-class households are currently driving demand growth. Fast food's distinctive characteristics, such as convenient service and low cost, have made it very popular with the general public. As a result, India provides tremendous opportunities for both domestic and foreign stars. With the passage of time, new players have entered the Indian street food market, launching projects like Chai Point in a conventional thela format or serving pani puri in a planned outlet. Daily, customers want to experience the best of all, from street food to Michelin-starred restaurants. Because of its low cost and unrivalled taste and flavour, street food has become very popular.

As a result, if restaurateurs can successfully raise the standard of hygiene and presentation of street food, they would be a definite winner in the street food market. The street food shops line in different parts of cities, crowd around public markets, or travel down the streets with their goods, they are physically omnipresent. These businesses are part of the 'informal economy,' which mostly consists of a single person engaged in petty trading. With the rise of urbanisation, there has been a surge in interest in this practise, which takes little skill and needs less resources. As a result, rural migrants or even poor city dweller can turn to street food vending as a source of income. The success of India's street food scene has evolved over time. The street food industry has gained attention as a result of the high demand for it in the food market. According to another food website, its market share is growing as a result of its focus on freshness and flavour in food products. Some people in India, on the other hand, dislike street food stalls because of vendor hygiene practises. They are concerned with hygiene, quality, and their surroundings. The majority of a city's population is normally served by street food stands. Furthermore, street food vendors in India are displaced on a regular basis.

Market potential & Strategy

The street food industry of India has been a phenomenal area of investment with high profitability and is expected to grow at an annual compound growth rate of 15% , over the span of upcoming 5-6 years.  Even many large foreign players are joining the market by making deals with domestic players, anticipating potential development. Many currently operating in the Indian market are extending their operations throughout the country's states. Over the forecast period, this pattern will become more pronounced, creating opportunities for local players to diversify their product portfolios. Since the untapped tier-II and tier-III cities offer significant growth potential, major fast food companies have already begun implementing different marketing campaigns to popularise their products in these cities.

Amid the onset of the deadly pandemic, the hesitance of people to consume street food has decreased and on the top of it the emergence of mobile phone based food delivery applications like swiggy, Zomato and many more tying up with various food chains have caused a huge damage to the gigantic 41$ billion value of unorganized street food industry. Even though the recent times have not been encouraging for the street food industry of India, the street food industry has been booming, and it's one of the best places to start a business. Indian street food is becoming increasingly popular around the world, and people from all walks of life are appreciating the local flavour. With the introduction of numerous brands that sell a wide variety of street snacks at affordable prices, competition in the foodservice industry is heating up. Indians are still on the lookout for low-cost, high-quality ingredients, but when they moved to organic, they lost interest in unhealthy snacks. People are increasingly demanding regional cuisines, and their appetite for street foods is growing as a result of local vendors' constant low-cost offerings.

In recent years, the street food industry has proven to be the most easy and secure investment choice. A large number of domestic and foreign investors have shown interest in exploring prospects in tier 2 and 3 cities. Around 60 to 70% of street vendors do not follow basic operating procedures, and the hygiene of their goods is poor. Before opening a street food franchise, there are a few things to consider:

Hygiene:Customers today want new, clean foods, but they tend to satisfy their hunger at QSRs (quick service restaurants). Street food is unquestionably a movement that is rapidly gaining traction, and an increasing number of corporate executives’ frequent street food stalls at lunch, breakfast, and dinner hours. As a result, Indians are frugal and enjoy trying new things.

Economic:Needless to add, Indian consumers are price conscious and frequent high-end dining establishments. It is your duty as a food operator to operate according to business conditions. People in various regions place a premium on fresh foods, but they also want something exclusive and enticing that gives their tongues a new taste.

Innovation:The market is populated by street food vendors, who have an exclusive menu at a fair price. Instead of dining in expensive hotels, small budget families enjoy roadside cuisines. Customers are looking to adopt foreign food culture, so the idea of an organised street food brand is a hit.

With a little innovation in the conventional street food industry of India, and switching over to consolidated street food chains, success is not afar.

Name & Address of Unit

Street Food Industry

your address

Details of unit
Email : [email protected]
Phone : 0000000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Name & address of promoter(s)
Name : Proprator
Designation : Proprator
Category : General
Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33
Net profit Sales %
Quick ratio
Revenue v/s Expense
Expense Splitup
Sl. no Item Amount Rs
1 Working Capital *******
Total *******

 

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******

Sl. no Item Amount Rs
Total *******
Sl. no Item Subsidy % No. Rate Amount Rs
Total Investment *******
Total Subsidy *******
Net Investment *******
Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Less :
Opening stock ***** ***** ***** ***** *****
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****
Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 ***** ***** ***** ***** *****
Subsidy ***** ***** ***** ***** ***** *****
Termloan ***** ***** ***** ***** ***** *****
Profit before tax with interest ***** ***** ***** ***** ***** *****
Increase in WC loan ***** ***** ***** ***** ***** *****
Depreciation ***** ***** ***** ***** ***** *****
Increase in Current liability ***** ***** ***** ***** ***** *****
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing ***** ***** ***** ***** ***** *****
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow ***** ***** ***** ***** ***** *****
Closing balance ***** ***** ***** ***** ***** *****
Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus ***** ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan ***** ***** ***** ***** ***** *****
Account payable ***** ***** ***** ***** *****
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory ***** ***** ***** ***** ***** *****
Trade receivables ***** ***** ***** ***** ***** *****
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****
Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit ***** ***** ***** ***** *****
b).Depreciation ***** ***** ***** ***** 0.30
c).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Repayments
a).Loan Principal ***** ***** ***** ***** *****
b).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
DSCR ***** ***** ***** ***** *****
Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building ***** ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Computers/ Printers /Photocopier/Electronic gadget 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Furniture & fixtures 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Racks & storage/Interior works 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new item 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Air-conditioning 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Other investments 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Total less depreciation ***** ***** ***** ***** *****
Total written down value ***** ***** ***** ***** *****

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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