The project report for Provision store - Grocery shop- Kirana shop is as follows:
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.
The retail shop / online selling point is located at the busy street and having a prominant location for getting good visibility
Globally, India is the sixth-largest grocery market and has a humongous potential for growth due to the rising population as well as disposable incomes. The Indian grocery market, which accounts for 69% of India's total retail market, offers plenty of opportunities to retailers. Many retail players have tried tapping into this potential without substantial results. The local kirana is still the epicenter of Indian grocery business with 90% of distribution under its belt. Even as retail giants battle against each other to become the consumer's habit when it comes to buying grocery, the small stores have held their ground.
Grocery is the mother of all categories with its inherent characteristics of high frequency, repeat rates, ability to launch own brands (high margin) and sheer size of the sector. Now a days the presenceof online grocery shops are a challenge.However, the humble kirana store or the neighbourhood grocery store has proved extremely durable and digital-resistant. These stores have not only survived the supermarket or large format retail chains then, and e-commerce now, they are also thriving. A couple of factors keep them evergreen and relevant.One is the ease of access. Two, is their ability to sell the most locally relevant assortment of goods for their customer base. You can’t beat a kirana store’s knowledge of what the local community consumes.It not just the variety of local produce they sell. The kirana shops usually provide free delivery in less than an hour with a handy credit facility for regular customers.Close to 12 million of these small stores dominate India’s grocery retailing. And despite the storied expansion of organised, modern retail and the arrival of e-commerce, kirana stores are the lifeblood of Indian consumption with a 96 per cent share of the grocery retail business. The intimate knowledge of the local consumer community helps them to better utilise the limited store space and turnover goods smartly. They stock only what they need while using the wholesaler as a warehouse.
The project report for Provision store - Grocery shop- Kirana shop is as follows:
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.
The retail shop / online selling point is located at the busy street and having a prominant location for getting good visibility
Globally, India is the sixth-largest grocery market and has a humongous potential for growth due to the rising population as well as disposable incomes. The Indian grocery market, which accounts for 69% of India's total retail market, offers plenty of opportunities to retailers. Many retail players have tried tapping into this potential without substantial results. The local kirana is still the epicenter of Indian grocery business with 90% of distribution under its belt. Even as retail giants battle against each other to become the consumer's habit when it comes to buying grocery, the small stores have held their ground.
Grocery is the mother of all categories with its inherent characteristics of high frequency, repeat rates, ability to launch own brands (high margin) and sheer size of the sector. Now a days the presenceof online grocery shops are a challenge.However, the humble kirana store or the neighbourhood grocery store has proved extremely durable and digital-resistant. These stores have not only survived the supermarket or large format retail chains then, and e-commerce now, they are also thriving. A couple of factors keep them evergreen and relevant.One is the ease of access. Two, is their ability to sell the most locally relevant assortment of goods for their customer base. You can’t beat a kirana store’s knowledge of what the local community consumes.It not just the variety of local produce they sell. The kirana shops usually provide free delivery in less than an hour with a handy credit facility for regular customers.Close to 12 million of these small stores dominate India’s grocery retailing. And despite the storied expansion of organised, modern retail and the arrival of e-commerce, kirana stores are the lifeblood of Indian consumption with a 96 per cent share of the grocery retail business. The intimate knowledge of the local consumer community helps them to better utilise the limited store space and turnover goods smartly. They stock only what they need while using the wholesaler as a warehouse.
Provision-Grocery shop
Address
: | [email protected] | Phone | : | 00000 |
Constitution | : | Proprietership |
Total project cost | : | ******* |
Fixed Capital | : | ******* |
Working Capital | : | ******* |
Total Bank loan | : | ******* |
Promoter(s) contribution | : | ******* |
Term loan | : | ******* |
Working capital loan | : | ******* |
|
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 |
Revenue v/s Expense | Expense Splitup | ||||
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Sl. no | Item | Amount Rs |
---|---|---|
1 | Building advance | ******* |
2 | Racks and storage units | ******* |
3 | Furniture | ******* |
4 | Electrification and cabling | ******* |
5 | Preliminary expenses | ******* |
6 | 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 | ******* |
9 | Working capital loan | ******* |
Sl. no | Item | Rate | Quantity | Unit | Total Rs | |
---|---|---|---|---|---|---|
1 | Revenue from Sales | ******* | X | 360 | Day | ******* |
Total | ******* |
Sl. no | Item | Amount Rs |
---|---|---|
1 | Rent | ******* |
2 | Electricity | ******* |
3 | Raw material purchase | ******* |
4 | Wages | ******* |
5 | Marketing/Advertisement | ******* |
Total | ******* |
Sl. no | Item | Subsidy % | No. | Rate | Amount Rs |
---|---|---|---|---|---|
1 | Building advance | ******* | 1 | ******* | ******* |
2 | Racks and storage units | ******* | 1 | ******* | ******* |
3 | Furniture | ******* | 1 | ******* | ******* |
4 | Electrification and cabling | ******* | 1 | ******* | ******* |
5 | Preliminary expenses | ******* | 1 | ******* | ******* |
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 | 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 | ***** | ***** | ***** | ***** | ***** |
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 | 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 | ***** | ***** | ***** | ***** | ***** |
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 | ***** | ***** | ***** | ***** | ***** | ***** |
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 | 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 |
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 |
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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