M.D. Foods Plant Start-Up in Gwalior, India

Opportunity Snapshot

Investment Opportunity

Project began by setting up an in house R & D Laboratory for the development and standardization of food products, Pharmaceutical & Industrial grade additives which were essentially use of carrageen, Pectin, Alginates, Locust bean gum, Xanthan Gum, Guar Gum.


Introduction:- The proposed unit envisages of manufacturer these Products because huge demand of these products in Indian Market as well as availability of technological. Know how, raw material & cheap manpower. The demand potential of these products is very high in winter session & some part of rainy session. The demand Potential of such items is also very huge in the area itself.

Project began by setting up an in house R & D Laboratory for the development and standardization of food products, Pharmaceutical & Industrial grade additives which were essentially use of carageenan, Pectin, Alginates, Locust bean gum, Xanthan Gum, Guar Gum.

The Total cost of project has been estimated at Rs. 15 Cr.

Constitutions:- The promoter of this unit is an young & generating person having good experience about such business practices as he is also worked in running unit and marketing of these products. Promoter has also acquired trading experiences as well as conversant with technological & marketing aspect of this unit.

Brief History of Products:- Our product range;
Stabilizer- Emulsifier system for:- Hard & Soft Ice cream, Kulffi, Yogurt, Flavoured Milk, Frozen Dessert , Water Lollies, Sorbets, Ketchup and Sauces.

Quality Improvers for:- Biscuits, Breads, Rusks, Waffle cone/wafer bucuits, Puffs, Noodles, spaghetti & Macaroni.

Bodying & Suspending Agents for:- Syrups, Juices, Thandai, Nan-fruit Bavarages, Pharmaceutical syrups.

Instant mixes:- Egg free cakes premixes, sponge cake ( vanilla & Chocolate), Muffin mix (vanilla & Chocolate), softy ice cream, Whipped cream, Mayonnaise, Hard Ice cream, Jams & Jellies, sauffles, Cheese spread, Ripple & Topping sauces.

Major sales of whipped cream in Indian market around 300 cr. In total.
RTS Products:- Jelly cubes, Jelly shreads, all kinds of Ice cream & Bakery Topping, Fat replacers.

Market Survey:- Lot of market is available for these products in the market to get Ice cream Industry and Bakeries of any products its also used for baking and processing also.

All India are already running many industries with full capacity and getting very good sales in the area with increasing demand.

Such type of Industry for same business.
1. Pilsberry
2. Gudrich
3. Rich
4. Himalaya freeze products
5. Shineroad
6. Tushar freeze products
7. Davars

List of Plant & Machinary:-
S. No. Name of Equipment Cost in lacks
1. Pasteurizer 10 lacks
2. Homogenizer 15 lacks
3. PHE 11 lacks
4. Aging vats (2) 18 lacks
5. Packing Machine 30 lacks
6. Box Making machine 12 lacks
7. Transfer Pump (2) 3 lacks
8. Blast room 25 lacks
9. Compressor 8 lacks
10. Generator 6 lacks
11. Boiler 9 lacks
12. Batch coding Machine 4 lacks
13. RO Plant 5 lacks
14. Hot oil Tank 6 lacks
15. Hot Water tank 8 lacks
16. Blender 8 lacks
17. Stitching machine 2 lacks
18. Sealing machine 4 lacks
19. Stepping Machine (2) 4 lacks
20. Grinding Machine 7 lacks
21. Sheaving Machine 4 lacks
22. Weighing balance (5) 5 lacks
23. Table 4 lacks
24. Troulies 3 lacks
25. Hand filling machine 2 lacks
26. Cattle 7 lacks
Total 2.20 cr.

R & D Laboratory cost: - 50 Lacks
Q.C. Laboratory cost:- 50 Lacks
Cost of Land: - 1 cr. For 25000 sq/ft
Building cost:- 3 cr.
Market Investment:- 5 cr.
Expenses of products marketing:- 2 cr.
Raw Material cost:- 80 lacks
Total Project cost:- 15 cr.


The Overall economics of the plant i.e. the capital cost and cost of operation is largely depends on the proper location of the plant. The various locational parameters applicable to the proposed unit are discussed in details in following para :

The power requirement of the proposed unit works out to around 45 H.P. including lighting. It is envisaged that the unit shall received power from the MPEB.

The skilled and unskilled labour will be easily available in the area itself & surrounding. Suitable housing facilities also available in the area and hence, the factory staff will not face any housing problem.

Water is sufficiently available in the location itself through own Tube - Well.

As the unit is located just in side of the main road therefore, adequate transport facility exists for transportation of goods from one place to another.


1. Unit : M/s. M. D. Foods,
2. Location : Gwalior

3. Annual sales target : 50 cr.
4. Raw Material : Gums base raw material
5. Utilities
1) Power : 45 H.P.
2) Water : From Own Sources through Tube Well
6. Man-power : Around 100 Person
7. Cost of Project : 15 cr.
8. Means of Finance
Term Laon : 15 cr.

9. Turnover : 50 cr.


1. Location : Gwalior (M.P.), India

2. Power : Available through M.P.E.B.

3. Water : Available from Tube -well

4. Transport Facility : By Road : Location is on,
hence adequate transport facility is available

5. Medical Facility : Available

6. Post Office : Available

7. Bank Facility : Available

The cost of production and profitability of the project for its first fifth operating years is calculated which is presented later on.
The various assumptions made for the calculation of cost of production and profitability is listed below:
1. The unit will work for 180 days on double shift basis in a year.
2. The capacity utilisation has been assumed at 60% in the first year, 70% in the second year, 75% in the third year, 80% in the fourth year onwards.
3. The sales prices are considered at ex-factory basis, based on prevailing market prices.
4. The cost of raw materials has been assumed at F.O.R. work basis. Any increase in cost of raw materials will be passed over to the consumers of the finished goods.
5. The details of manpower and wages are on the basis of industry practice.
6. Employees benefits have been taken at 10% of wages and salaries, which include benefits, house rent, gratuity, paid leave etc.
7. Every year an increase of 10% / 5% has been assumed.
9. The sales expenses and sales commission have been taken @ 5% sales.
(A) Name and Address : Mr. Girish Kumar Mahor
(B) Date of Birth : 10 Sep 1980
( C) Qualification : M.Sc. in Food Technology
(E) Communication : Hindi & English

Investors can establish contact with the project owner on Merar. Detailed business plan is available for download by registered investors.

Competitive Advantage

Huge market of our business in Indian market and International market around 1000 cr. of total sales that's business. and I also technical person and we capture of start up only 20% share. We confidant of our project success near about in six month.

Rationale for the deal

I Have our Marketing team those work in Indian market. My team of 10 parson those worked in all Indian region. so i confidant, I will success in our business.

Use of financing

Because lack of money of my side but in my mind have biggest business plan. I will refund of all money with in five year and I want to quarterly installment schedule. If you are finance of this much money start up our plan.

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