PROJECT REPORT
Margin free shop
Address
Introduction
Project report for supermarket is as follows
India has replaced China as the most favorable market for retail expansion, supported by a fast-growing economy, increasing consumption rates, rising urbanizing population and a burgeoning middle class. The total market size of Indian retail sector was estimated to be around US $650 billion in 2018, thereby registering a compound annual growth rate (CAGR) of around 7.5 percent since 2000. The retail industry is expected to grow to US $1.6 trillion by 2026, registering a CAGR of about 10 percent. However, modern trade is expected to grow at a rate of 20 percent per annum and traditional trade is expected to grow at a rate of 10 percent per annum.
Of the overall retail industry, food and grocery accounts for the largest share in revenue in India. India is the world’s second-largest producer of food. Food and grocery retail in India exceed US $294 billion representing 16 percent of India’s GDP. By 2020, food and grocery segment is estimated to constitute 66 percent of the total revenue in the Indian retail sector, followed by the apparel segment. The grocery business in India is distinctive in many ways, primarily due to the diversity of consumers and the unique distribution models of the retail sector. From mom and pop stores to giant supermarkets to online grocery stores, the grocery business in India operates across channels. However, most of India's grocery business happens through the unorganized sector, which mainly comprises of small stores, also known as kiranas.
Product / Services & process
We offer a supermarket with self-service shop offering a wide variety of food, beverages and household products, organized into sections and shelves. It is larger and has a wider selection than earlier grocery stores.
Market potential & Strategy
The grocery business in India is distinctive in many ways, primarily due to the diversity of consumers and the unique distribution models of the retail sector. From mom and pop stores to giant supermarkets to online grocery stores, the grocery business in India operates across channels. However, most of India's grocery business happens through the unorganized sector, which mainly comprises of small stores, also known as kiranas. There are over 12 million small stores in India and account for over 90% share of the Indian F&G market, which is predicted to reach USD 810 Billion by 2020. Indians have traditionally relied on mom and pop stores for their monthly food & grocery needs. These stores have a personal connection with their customers and are well versed in customer preferences, which in turn enables them to stock locally relevant products. Indians prefer buying their monthly supplies from these local stores for various reasons such as proximity, availability of credit, and the option to return/exchange products. However, with rising disposable incomes and internet penetration, the eGrocery market is expected to grow by leaps and bounds in the near future. The eGrocery market size, which was worth USD 0.69 billion in 2017, is projected to grow to 16 billion by 2020; translating to a staggering of 148?GR. The fact that India is home to the youngest population in the world (avg. age - 27.6 yrs) plays a major role in the predicted shift in the Indian grocery market. Equipped with disposable incomes and smartphones, young consumers are internet savvy and prefer ordering their grocery online, given their busy lifestyle. This change has majorly contributed towards creating a dynamic market environment in India and has opened up opportunities for the organized e-retail players.
Project at a glance
Name & Address of Unit
Supermarket
Address
Details of unit
Email
|
: |
[email protected]
|
Phone
|
: |
000000
|
Constitution
|
: |
Proprietership
|
Total project cost
|
: |
*******
|
Fixed Capital
|
: |
*******
|
Working Capital
|
: |
*******
|
Total Bank loan
|
: |
*******
|
Promoter(s) contribution
|
: |
*******
|
Term loan
|
: |
*******
|
Working capital loan
|
: |
*******
|
Name & address of promoter(s)
Name |
| : Your name |
|
Address |
| : Address |
|
Phone |
| : 00000 |
|
Designation |
| : Proprietor |
|
E-mail |
| : [email protected] |
|
|
Project Feasibility Ratio
Debt Service Coverage Ratio (Average) |
:1.87 |
Current ratio (Average) |
:2.63 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 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 |
Project Feasibility graph
Revenue v/s Expense
|
Expense Splitup
|
|
|
  |
Revenue |
  |
Expense |
|
|
|
Net profit Sales %
|
Quick ratio
|
|
|
|
|
|
Project Cost
Sl. no |
Item |
Amount Rs |
1 |
Building advance |
******* |
2 |
Freezers |
******* |
3 |
Generator |
******* |
4 |
Computer and biling equipments |
******* |
5 |
Aircondition |
******* |
6 |
Racks and storage |
******* |
7 |
Electrification |
******* |
8 |
Preliminary expenses |
******* |
9 |
Interior work |
******* |
10 |
Working Capital |
******* |
|
Total |
******* |
Working Capital Computation
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 |
******* |
9 |
Working capital loan |
******* |
Annual Sales / Revenue
Sl. no |
Item |
Rate |
|
Quantity |
Unit |
Total Rs |
1 |
Revenue from Sales |
******* |
X |
312 |
Day |
******* |
|
Total |
******* |
Total Yearly Expense
Sl. no |
Item |
Amount Rs |
1 |
Rent |
******* |
2 |
Salary |
******* |
3 |
Accounts and admin |
******* |
4 |
Repairs & Maintanance |
******* |
5 |
Electricity |
******* |
6 |
Office expense & utilities |
******* |
7 |
Raw material purchase |
******* |
8 |
Wages |
******* |
9 |
Marketing/Advertisement |
******* |
|
Total |
******* |
Application of Fund
Sl. no |
Item
| Subsidy % |
No.
| Rate
| Amount Rs |
1 |
Building advance |
******* |
1 |
******* |
******* |
2 |
Freezers |
******* |
2 |
******* |
******* |
3 |
Generator |
******* |
1 |
******* |
******* |
4 |
Computer and biling equipments |
******* |
1 |
******* |
******* |
5 |
Aircondition |
******* |
1 |
******* |
******* |
6 |
Racks and storage |
******* |
1 |
******* |
******* |
7 |
Electrification |
******* |
1 |
******* |
******* |
8 |
Preliminary expenses |
******* |
1 |
******* |
******* |
9 |
Interior work |
******* |
1 |
******* |
******* |
|
Total Investment |
******* |
|
Total Subsidy |
******* |
|
Net Investment |
******* |
Means of Finance
Sl. no |
Item
| Amount |
1 |
Term Loan |
******* |
2 |
Working capital Loan |
******* |
3 |
Total loan |
******* |
4 |
Term Loan contribution |
******* |
5 |
Working capital contribution |
******* |
Profitability Statement
|
|
Year 1(!*) |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Revenue from operation |
|
|
|
|
|
|
Sales |
15.93 |
***** |
***** |
***** |
***** |
***** |
Add : |
|
|
|
|
|
|
Closing stock |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total |
|
***** |
***** |
***** |
***** |
***** |
Less : |
|
|
|
|
|
|
Opening stock |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Stock purchase |
7.20 |
***** |
***** |
***** |
***** |
***** |
Salary |
3.60 |
***** |
***** |
***** |
***** |
***** |
Repairs and maintenance charges |
0.24 |
***** |
***** |
***** |
***** |
***** |
gas |
0.12 |
***** |
***** |
***** |
***** |
***** |
ELECTRICITY bill |
0.12 |
***** |
***** |
***** |
***** |
***** |
Total |
|
***** |
***** |
***** |
***** |
***** |
Gross profit |
|
***** |
***** |
***** |
***** |
***** |
Less : |
|
|
|
|
|
|
Rent |
0.12 |
***** |
***** |
***** |
***** |
***** |
Telephone/Postal &internet charge |
0.12 |
***** |
***** |
***** |
***** |
***** |
Total |
|
***** |
0***** |
***** |
***** |
***** |
Depreciation |
|
***** |
***** |
***** |
***** |
***** |
Interest on TL |
|
***** |
***** |
***** |
***** |
***** |
Interest on WC |
|
***** |
***** |
***** |
***** |
***** |
Total |
|
***** |
***** |
***** |
***** |
***** |
Profit before tax |
|
***** |
***** |
***** |
***** |
***** |
Income Tax |
|
***** |
***** |
***** |
***** |
***** |
Profit after tax |
|
***** |
***** |
***** |
***** |
***** |
Cash flow statement
Cash Inflow |
Pre operative period |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Capital |
0.63 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Subsidy |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Termloan |
***** |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Profit before tax with interest |
0.00 |
***** |
***** |
***** |
***** |
***** |
Increase in WC loan |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Depreciation |
0.00 |
***** |
***** |
***** |
***** |
***** |
Increase in Current liability |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total Cash Inflow |
***** |
***** |
***** |
***** |
***** |
***** |
Cash Outflow |
|
|
|
|
|
|
Fixed Assets |
***** |
***** |
***** |
***** |
***** |
***** |
Increase in Current asset |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Interest on TL |
0.00 |
***** |
***** |
***** |
***** |
***** |
Interest on WC |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Income Tax |
0.00 |
***** |
***** |
***** |
***** |
***** |
Decrease in Term loan |
|
***** |
***** |
***** |
***** |
***** |
Drawing |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total Cash Outflow |
***** |
***** |
***** |
***** |
***** |
***** |
Opening balance |
***** |
***** |
***** |
***** |
***** |
***** |
Net Cashflow |
0.00 |
***** |
***** |
***** |
***** |
***** |
Closing balance |
0.00 |
***** |
***** |
***** |
***** |
***** |
Balance sheet
Liability |
Pre operative period |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
A. Share holders funds |
|
|
|
|
|
|
Capital |
***** |
***** |
***** |
***** |
***** |
***** |
Reserve & Surplus |
0.00 |
***** |
***** |
***** |
***** |
***** |
B.Non current Liabilities |
|
|
|
|
|
|
Termloan |
***** |
***** |
***** |
***** |
***** |
***** |
C.Current Liabilities |
|
|
|
|
|
|
Working capital loan |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Account payable |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total Liability |
***** |
***** |
***** |
***** |
***** |
***** |
Asset |
|
|
|
|
|
|
A. Non current Assets |
|
|
|
|
|
|
Fixed Assets |
***** |
***** |
***** |
***** |
***** |
***** |
B. Current Assets |
|
|
|
|
|
|
Inventory |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Trade receivables |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Cash and cash equivalence |
***** |
***** |
***** |
***** |
***** |
***** |
Total Asset |
***** |
***** |
***** |
***** |
***** |
***** |
Repayment of Term loan
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 |
***** |
***** |
***** |
***** |
***** |
Debt Service Coverage Ratio
Particulars |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Receipts |
|
|
|
|
|
a).Net Profit |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
b).Depreciation |
0.00 |
0.00 |
0.00 |
0.00 |
0.30 |
c).Interest on termloan |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Repayments |
|
|
|
|
|
a).Loan Principal |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
b).Interest on termloan |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
DSCR |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Depreciation
Particulars |
Rate |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Building |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Computers/ Printers /Photocopier/Electronic gadget |
00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Furniture & fixtures |
00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Racks & storage/Interior works |
00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
new item |
00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
new |
00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Air-conditioning |
00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Other investments |
00 |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Less Depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total less depreciation |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Total written down value |
|
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
Conclusion
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.