I am looking to set up a new FMCG company in Mumbai to provide quality salty snacks in the Indian market. Sales forecast for Year 1 is US$17-23 Million.
We are starting up a FMCG venture (snacks food production) with a head office based in Mumbai.
Our products will be Packaged Snacks Foods such as:
• Potato Wafers,
• Extruded Snacks etc.
The price range will be between INR5 and INR10 for a total of 15 products
We have 4 contract manufacturers. My company focuses on marketing and distribution.
In the 1st year we will target 11 Indian states: Maharashtra, Gujarat, Karnataka, MP, Rajasthan, NCR, Haryana, Telangana, AP, Uttar Pradesh, and Bihar. We plan to expand to the rest of the country in the future.
Quality and taste are always sensitive subjects in this industry, hence we are focused on quality and provide a unique taste. The price is always a tactical issue so in the 1st year we will also focus on only INR5 and INR 10 MRP products.
We focus on service to timely delivery of goods in stockist warehouse and ensure to visit retail counter in weekly by distributor and put the goods in every retail counter because in this industry one of the major challenges is timely delivery of goods from company to stockist warehouse and distributor to retailer. Stockist are always problematic as they maintain high inventory and chance of damage the goods. However, this wouldn’t be a problem for our company because:
• We have 4 contract manufacturers
• Our manufacturers have high potential and large production capacity
• They have a good reputation in market
• The most important advantage of these manufacturers is their location. They are all centrally located, with the average distance between a manufacturer to my stockist warehouse being 430 kilometre.
We will focus on the low and middle class income group and our main target consumer age group would be year old 3 -18 children.
Our target revenue in the 1st year is more than INR 100 Crore or approx. $17-23 Million.
When our revenue crosses $17 million in the 1st year we will set up our own plant.
The Indian packaged snacks food market size is $3 billion in 2014 and compound growth is 20-25% annually.
We aim to acquire 10% market share in snack food industry in 2020.
The market size of Indian snacks food industry is INR 18000 Crore. Our target is acquire 1% market share. It is an ambitious target but I am very confident to achieve this it.
Our Sales forecast is prepared based on month‐by‐month projections. The forecast is based on our historical sales, the marketing strategies that we have just described, our market research, and industry data.
We have forecasts:
1) A ʺbest guessʺ, which is what we really expect, and
2) A ʺworst caseʺ low estimate that we are confident we can reach no matter what happens.
The forecast is based on our plans to cover 11 Indian states (314 Districts).
Best Guess Forecast:
• 342 CONTAINERS/MONTHLY CONSUMPTION
• (INR 353000/CONTAINER* 342) Monthly
• APPROX INR 1500 MILLION BUSINESS IN 1st YEAR
Worst Case Forecast
• 250 containers monthly
• 600 CB in a container
• 168 retail pack in a CB, i.e. $17 Million
We are looking for $2 Million of capital to be used for:
• Startup expenses
• Building inventory
• Purchase of raw materials
• Purchase of seasoning
• Purchase of lamination
• The investor can take shareholding in thecompany.
• The Investor will get an assured return of 12% annually and profit sharing.
• The investor can decide after 1st year exist or continue.