feasibility study analysis of vlsc by satyapriya sahu123

8/3/2019 Feasibility Study Analysis of VLSC by Satyapriya Sahu123

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Feasibility study of VLSCs 2011

Feasibility study of VLSCs in Telkoi block ofKeonjhar Districts, Odisha

Authors

Satyapriya sahu

Host Organization

Udyogini, Bhubaneswar, Odisha

Faculty Guide

Prof.HS Ganesha


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Approval Page

SCHOOL OF RURAL MANAGEMENT, KIIT UNIVERSITY

Bhubaneswar

The MTS Report of

Satyapriya sahu

Candidates for the degree of MBA Rural Management


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Executive Summary

Title of the Project-: A feasibility study for Village Level Service Center

(VLSc) in Telkoi Block of Keonjhar District.

Host Organization-: Udyogini, Bhubaneswar, Odisha.

Project Location-: 17 Villages of Telkoi Block in keonjhar Districts of Odisha

Project Period-: 4th July to 3rd September 2011

Objectives of the Project-:

The study is focused to conduct a feasibility study for the business and related services through

village level service centres (VLSCs). The long term goal of the study is to increase the

profitability VLSCs in the study area. To achieve this goal following objectives have been

defined:

o Identifies new opportunities through the investigative process.o Enhances the probability of success by addressing and mitigating factors that could affect


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Methodology Adopted-:

Individual as well as group based method of data collection has been adopted.

Primary data was collected from farmer household who joined VLSc training which was

provided by Udyoini, the data was collected from 17 villages.

The other source of primary data was structured interviews of competitors at local marketcenters.

Findings & Analysis-:

VLSCs and CLSCs are owned by UJAS. VLSCs are the Village Level Services through whichthe Cluster Level Service Centers (CLSCs) sell retail products as well as procure the

commodities from the villages. VLSCs are operated by a woman entrepreneur selected from the

Individual Based Group Based

- Face to face interviewby using questionnaire

- Focus group discussion

- Competitor survey


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The financial analysis shows that there is profit in the business and the amount issufficient to recover the cost incurred to start the business. The Net Present Value (NPV)

at the discount rates of 15% shows a positive outcome which indicates that it is wise to

invest in the project.

The conditions (shop is far away from village, charging extra money for products,Demand is higher than supply) of the villages are suitable for set up VLSCs.

The project is socio-economically advantageous for both the organization and thecommunity, i.e. empower women as an entrepreneur and providing grocery materials at

effective price as well as quality.

Recommendation

As the business is financially viable and sustainable, the organization should invest in thisbusiness. They should expand the network of VLSCs which would help them to access the

market more which means to full fill more demand.


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Acknowledgment

In preparing this report a considerable amount of thinking and informational inputs from various

sources were involved. I express my sincere gratitude to everyone who contributed towards

making this report possible.

I express my gratitude to reporting officer Ms. Sudipta Mallick, Enterprise promotion Manager,

Udyogini, Bhubaneswar, for giving me the precious opportunity to work on this project. I extol

my sincere gratitude for devoting the precious time in providing her ainstaking guidance as well

as her abiding inspiration all throughout the project period to accomplish work successfully.

My sincere thanks to Ms. Joutirmayee Swain and Mr. Nilmadhab Digal, Enterprise Promotion

Executive and Enterprise promotion Manager, Udyogini, Bhubaneswar, for displaying keen

intrest in our project and providing us all the valuable information without which project would

not have taken the present shape. Finally I thankful to all the staff members of Udyogini for their

invaluable cooperation and support extended to us throughout our project period.


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Contents

1.Introduction-: .....................................................................................................10

1.1. Organization Overview-: .............................................................................11

1.2. Objective of the study: .................................................................................11

1.3. Scope of the Study: ........................................................................................12

1.4. Designated Project Area-: ..............................................................................12

1.5. Limitations of Study: .....................................................................................13

2. Methodology ....................................................................................................13

2.2. Survey Design: ...............................................................................................14

2.3.1. Product data collection ................................................................................15

2.4. Data Analysis-: ..............................................................................................15

3. Literature Review ...........................................................................................15

4. Analysis and Findings .......................................................................................17

4.1. Market Feasibility Analysis-: .........................................................................17

4.1.1 Target Market ..............................................................................................17

4.1.2. Current Market ............................................................................................18

4.1.4. Consumption level basic necessities of 30-40 households in week-:............20

4 2 Competitor Analysis : 20


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List of Tables-:

Table No Description Page no

1Current Market Data

19

2 Products brand classification 23

3 Technical requirements 24

4 Start up expense for VLSCs 26

5 Variable cost analysis for 5 years 27

6 Sales Realization for 5 years. 28

7 Calculation of depreciation 28

8 Profitability estimation 29

9 Cash flow for 5 years 30

10 Calculation Payback period 32

11 Break even Analysis 33


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1.Introduction-:

As part of the business development service, Udyogini planning to establish Village Level

Service Centers (VLSC) by imparting training and skill development to women and also

providing financial support to open VLSC and enhance their livelihood. The VLSCs are linked

with their cluster counterpart known as Cluster Level Service Centers (CLSCs), CLSCs areworking as wholesaler by providing the retail products to the VLSCs and procuring the

commodities from them. VLSC also planning to acts as a local retailer, trying to sell FMCG,

Pulse, Spices, Oil, Cereals etc products in the village.

Women Enterprise Groups (WEGs) a group of 10-15 women, is similar to an SHG and forms

the foundation of the Udyogini enterprise model. The basic design and the objective of the

intervention were to inculcate entrepreneurial skills in the WEGs and its members. Udyogini

started the intervention with capacity building of the WEGs through facilitation of training on

Concept of enterprise. The training was also intended to expose them to ideas beyond just

survival and subsistence for livelihood.

As part of the Management Traineeship Segment, the major objective was to conduct a

feasibility study of VLSC focused on various portion like Market Technical Product as well as


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1.1. Organization Overview-:

The term Udyogini connotes Women entrepreneur. The organization, since the early nineties,

has been working to empower the poor and socially marginalized women with adequate skills

and resources necessary for developing and managing micro-enterprises. Udyogini has done this

by providing Business Development Services (BDS) to them directly or to the organizations

working to them. The fiscal year 2009-2010 has witnessed considerable deepening of programs

in existing states and expansion to new states. Udyogini has r reached to newer areas and

households in this year by transforming womens motivation into capabilities, which has helped

many of them to become knowledgeable entrepreneurs. Furthermore Udyogini has established

new strategic partnership with public and private agencies for elevating its operations for

increasing the scale and scope of organizations three core products i.e. value chain

development, market linkages and enterprise and entrepreneurship training.

Back in the early 1990s, when Udyogini was established, the focus on microenterprise

management training was innovative at a time when even microcredit was a new idea. Udyogini

took an early lead in the domain by motivating smaller NGOs towards microenterprise in their

portfolio of programs for poverty alleviation for women. It enabled NGOs, through a program of

sustained support comprising training for enterprise awareness, management and counseling, to

move into developing microenterprise programs and having staff with orientation to


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o Identifies new opportunities through the investigative process.o Enhances the probability of success by addressing and mitigating factors early on that

could affect the project

o Provides quality information for decision making.o To assess the market condition and services i.e. to find out the potential competitors.o To address the technical as well as financial overview of the proposed project.

1.3. Scope of the Study:

The information, suggestions and opinions made can help in strategic planning for developing

the business plan for the VLSCs and other related services to increase the productivity in long

term. The primary data collected regarding market analysis, competitor analysis and agent

interviews at sample villages and systemic knowledge generated by this would result in the

creation of a resource for other future studies.

1.4. Designated Project Area-:

For the Feasibility study analysis the study was conducted in 17 villages of Telkoi block of

Keonjhar district of Odisha.

ibili d f SC


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1.5. Limitations of Study:

The time period was not sufficient for studying the different dimensions and details which would

have been more beneficial.

The villagers were sometimes confused and/or suspicious of some of the questions; particularly

about income, expenditure and size of landholding.

2. Methodology

Ph F ibili d f VLSC 2011


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Phase 1:It includes detailed discussion with the staff of Udyogini and based on the discussion and

background study the questionnaires were developed for primary data collection.

Phase 2:

The phase 2 of the project consisted of the field work for the data collection from the respondents.

Various statistical tools were applied to analyze the data. The report was prepared on the analyzed

data.

2.1. Sample Design and Sampling Method:

The feasibility study of VLSCs and related services was done in purposive sampling which was

done by choosing the respondent from each village who has attend the VLSCs training class. The

respondents were randomly selected based on their availability and willingness to participate in

h h f h d h d b f i h F ibilit t d f VLSC 2011


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for both.

2.3.1. Product data collectionThe data on product was collected from potential

customers. The data was collected through both questionnaire and discussion based

methodology. The data here was collected to know about the preference and usage consumer

towards grocery products and their perceived demand.

2.3.2. Process data collection

This data was mainly collected on what the ongoing process is and how it could be improved.

For Feasibility analysis and problem identification data was collected by structured interviews of

the VLSCs entrepreneur and FGD at assigned villages. In order to find out the potential demand

of the customer the data was collected from the villages grocery shop.

2.4. Data Analysis-:The data collected was analyzed using various statistical tools after tabular and graphical

summarization of the raw data. After the data analysis the final conclusion were drawn and these

conclusion along with personal observations at field formed the basis for recommendations.

F ibilit t d f VLSC 2011


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For a country like India whose population of women alone is more than the total population of

many other countries, we fare pretty low where their treatment is concerned. Women and poor

women in particular are the most vulnerable segments of developing societies. This is because men

have been considered in these societies to be the income earnersthose who go out to work while

womens work has been confined to the household. Women are thus invisible and unremunerated for

their household work. When, due to economic pressures, women have been forced to go out to work,

it has given rise to multiple burdens on women of household work, childrens welfare and wage

earning. The multiple burdens have resulted in women making the adjustments, at great cost to their

own health and well-being. While women have increasingly become important economically to the

household and have been recognized to be contributors to the household economy, they lose the most

when economic forces negatively affect livelihoods. They and their children, suffer the effects of

dislocation and loss of income due to forces that they do not understand or have control over.

Further, their economic lives have been mainly subsistence-orientedto fulfill basic needs. Theyhave not received their share of education, training, health and livelihood opportunities consistent

with their potential, which will enable them to deal with crises and shocks or improve their well-

being. This is true of India as of other developing countries. Hence, capacity building for women for

greater market control must be seen in terms of two stages; livelihood security and enterprise growth.

Livelihood security: The attributes of this stage are: women are involved in rudimentary

income-generating activities; with training, they begin to understand market channels and

Feasibilit st d of VLSCs 2011


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4. Analysis and Findings

Finding and analysis for feasibility study of VLSCs and related services

A feasibility study is essentially a process for determining the viability of a proposed initiative and

services and providing a framework and direction for its development and delivery.

A typical feasibility study is done to:

Find out the potential competitors and suppliers (Market analysis)

Determine the technical requirements (Technical analysis)

Determine the cost and benefits (Financial analysis)

Socio-economic analysis



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villages like Kuelisuta and Kandposi has come to Akula for purchasing their items .

4.1.2. Current Market

According to the primary data, we derived at a point that village like Ahugula havent a single

shop and villages like Akula has 6 shop. So people from Ahigula villages has cover 15 Km

distance to purchase their basic necessities.

Name of the Village Total No of Households Total No of Grocery Shop

BImala 200 3

Jharbera 65 2

Kudbil 65 5

Marda 130 5



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Bandhanjhari 35 3

Malanda 100 4

Karamangi 50-60 2

Ahigula 35 NIL

Bena 130 5

Kantalsuan 80-90 3

Bhaludari 45 1

shyamnali 90 2

Table1. Current Market Data



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Target customer-:

As VLSCs is a new concept for villagers, Udyogini targeted 30-40 households from each

villages.

4.1.4. Consumption level basic necessities of 30-40 households in week-:

10

15

20

25

30In a week

In a week



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villages. No such big competition among the shop keeper.

4.2.1. Strength and Weakness of Competitors:A) Strength -:

1. No big competition

2. Buyers are fully dependable

3. Earning profit regularly

4. They can sell the products in loose and at credit

5. Updated pricing strategies and mechanism

B) Weakness -:

1. Limited Resources2.

Cant meet the buyers need

3. No quality substitute product4. Demand is more than supply



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2 Tooth brush Orange 5

3 Coconut oil Shalimar (Mahavir), shree Balaji,

Jasmine(pouch), uttam Nihar,balaji

100

gm=25,200gm= 50

200 gm= 47,1

100gm= 21

4 Toilet soap Jo, Superiya, Lifebuoy, lux, Dyna ,

vivel

5 , 10

5 Shampoo Clinic plus, superiya, Sunsilk,

Vatika

1

6 Washing Bar Ok wheel, Maxoo, prakash,

sunlight, Rin

4,5,10

7 Detergent powder Wheel, Super kwik (200gm), surf

excel, Max

5,10,2

8 Face powder ponds 5

9 Face cream Fair & lovely, Vivel 7,5



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Tarini Maa

15 Fabric whitener

16 Turmeric powder Jayashree, Ruchi, swadist, Pooja 1,5

17 Chilly powder Jayashree, RMM mahek, Ruchi 1

18 Meet masala Ruchi,jayashree 1

19 Jeera Jayashree, RMM mahek 1

20 Flour Nilachakra, Ashribada 20-22

21 Besan Badhu (500 gm) 18

22 Mustard Oil Meera, Gati (200gm), Swastik,

Ganesh, Gopal(200gm =22)

70, 25,85

1 lit 80rs

23 Refined oil Ruchi gold,Himani 35,45

24 Salt Shree shakti, Jeevan dhara 5

Table2- Products brand classification


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Centers is like a whole sale agency for the VLSC from where they have to purchase the products.

These CLSCs are run by the UJAS itself.

VLSCs will work according to the above existing model.

Cabin ( Capacity @ 50 sq feet)

Land size is according to the cabin

Capital equipment list-:

Furnitureequipments

others

Working capital-:

Vegetable

pulses

cereals

FMCGs

Spices

Oil

Others material cost

One Udyogi



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y y 0

i.e. promotion, the organization should engage in promoting their idea of opening a VLSCs

through various modes such as field demonstration, training and FGDs.

4.5. Financial Analysis-:

In a financial feasibility study, we analyze the total costs of a proposed project (including all

construction costs and operating costs) and the potential revenues that the project can get. If the

potential revenues of the proposed project can cover all of the costs, then the project is

financially feasible.

4.5.1. Start up expense for VLSCs-:

Start up expense for VLSCs

Initial investment Amount



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y y

The financial analysis is done

assuming that the business is for the

time period of five years.

Total 15,000

Working capital ( For 1

Month)

Vegetables 2,400

pulses 2,000

spices 800

Oil 2,000

FMCG's 4,200

Cereals 1,500

Other 800

Total 13,700

Total startup expense 28,700



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y y

4.5.2. Variable cost* analysis for 5 years-:

Variable cost analysis for 5 years

Year FMCGs Pulses Spices Oil Vegetables

(onion,

potato,

Garlic,

Ginger)

Cereals Other

( including

transportation

cost)

Total

0 0 0 0 0 0 0 0 0

1 50,400 24,000 9,600 24,000 28,800 18,000 9,600 1,64,400



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y y

Assumptions

It has been assumed that all the working capital will increase 20% per annum.

4.5.3. Sales Realization-:

Avg Sales Realization

year sales realization Growth rate

1 205,500 0

2 246,600 20%

3 295,920 20%

4 355,104 20%

5 426,125 20%

Table6-: Sales Realization for 5 years.

* Assuming 20% growth by per year.



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Assumption-:

It has been assumed that sales have been increase by 20% per annum. Materials is 80% of sale Repair & maintenance will hike by 10% per annum. Depreciation is calculated by SLM.

4.5.5. Profitability Estimation-:

PROFITABILITY ESTIMATION

No Particulars Year 1 year 2 year 3 year 4 year5

A Sales realizations 205,500 246,600 295,920 355,104 426,125

B Material cost 164,400 197,280 236,736 284,083 340,900

Repair & maintenance 3000 3300 3630 3993 4392.3

Total 167,400 200,580 240,366 288,076 345,292

Profit before depreciation 38,100 46,020 55,554 67,028 80,833

C Depreciation 3 000 3 000 3 000 3 000 3 000 Feasibility study of VLSCs 2011


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4.5.6. Cash flow year wise-:

FIG- Cash flow projection for 5 Years

From the above table it is clear that cash flow

is increase year by year.

YEAR Annual cash inflow

0 -28,700

1 38,100

2 46,020

3 55,554

4 67,028

5 80,833



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4.5.7. Project Evaluation-:

Fig3- Project evaluation criteria

An efficient allocation of capital is the most important finance function in current era. It involves

decisions to commit the firms funds to the long term assets. The decisions would generally

include expansion, acquisition, and modernization. For the project evaluation various techniques

were used like NPV, IRR and payback period (PB).

Evaluatio

n Criteria

DCF Criteria

NPV

(Net present

value)

IRR

(internal rate

of return)

Non DCF

criteria

Payback period



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4.5.9. IRR (Internal rate of return)-:

The Internal rate of return (IRR) is another discounted cash flow technique which takes account

the magnitude of timing of cash flow. The IRR of a project is the discount rate at which makes

its NPV equal to zero. As IRR is greater than the cost of capital we accept the project.

4.5.10. Payback period-:

The payback period is one of the most popular and widely recognized traditional methods for

evaluating investment proposal. Payback is the number of years required to recover the original

cash outlay invest in a project. We will recover the original cash outlay within 8-9 months of

time period.

PAY BACK PERIOD

Total Investment of the

project 28,700

year Year1 year2 year3 year4 year5

Cash flow 38100 46020 55554 67027.8 80832.66



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4.5.11. Break-even Point-:

It is a point in the level of activity at which an enterprise just breaks even without earning any

profit or incurring any loss.

BREAK EVEN ANALYSIS

No. Particular Year 1 Year 2 Year 3 year 4 Year5

A Sales 205,500 246600 295920 355104 426124.8

B Variable cost

Vegetables 28,800 34,560 41,472 49,766 59,719

pulses 24,000 28,800 34,560 41,472 49,766

spices 9,600 11,520 13,824 16,588 19,905

Oil 24,000 28,800 34,560 41,472 49,766

FMCG's 50,400 60,480 72,576 87,091 104509

Cereals 18,000 21600 25920 31104 37324

Other 9,600 11520 13824 16588 19905

Repair and



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4.6. Socio-Economic Analysis-:

The foremost aim of any NGO is to help the community to increase their socio-economic status

keeping in regards the business aspect of the intervention. The products and services provided by

the business would not only be beneficial to the villagers but also help in generation of additional

employment. This business reinforces the vision, mission and goal of Udyogini i.e. to empower

women as an entrepreneur as the products would be sold through VLSCs to the villagers in their

respective villages.

5. Conclusion

After research and analysis it is concluded that the Village level service centers (VLSCS) is

feasible due to various reasons such as:

The Market analysis shows that the demand for grocery products and services issufficient enough to start a new business. Market analysis also shows that the competition

is less in the region. The analysis also states that the shop keepers are not able to fulfill

the customers demand which will be good sign for us to start up our VLSC with a

purposive aim to achieving the customers needs and preferences.

The financial analysis shows that there is profit in the business and the amount is Feasibility study of VLSCs 2011


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6. Recommendation

As the business is financially viable and sustainable, the organization should invest in this

business. They should expand the network of VLSCs which would help them to access the

market more which means to fulfill more demand.

Variety, quality and quantity of the products offered by the CLSC should be increased. VLSCs

would like to see more variety in their retail products, since villagers demand for these products,

like medicines, soils, soap, oil etc.

Proper implementation of 4Ps should be followed in the operational areas of VLSCs

Operators knowledge about the prices in market should be increases so that he will be able to

advise and support the women when needed.

The organization should also be engaged in promotion of some livelihood development activities

and skill/ capacity building of the people so that their purchasing power can be increased. This

would help the organization in two ways:

Building repertoire with the community which will help the organization in their future Feasibility study of VLSCs 2011


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7. Annexure-:

Survey questionnaire for VLSCs

A.Respondents Personal Details Date ..Information Name

1 Respondents Name

2

Block

3

Village

4



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B. Socio- Economic Status

1. Name of SHG (if member) : ___________________ Desg: _________________________2. No. of earning members : ____M ____ F_____T Place : within Vill (___) / outside vill (___)3. Main place of work (if out) : _______________ Dur.: < 1 mth / 1-3 mth / 3-6 mth

/< 6mth

3. Total monthly income and expenditure of the family (cash):

Monthly Income and Expenditure

Sources of Income Income (Rs.) Main Expenditure Heads Expenditure (Rs.)

A. Agricultural A. Food Consumption

B. Wages labour B. Clothing

l i d j b l



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L. Others L. Interest Payments

M. Irrigation water

N. Fertilizers

O. Pesticides

P. Others

Total Total

Remarks (if any):

4. Monthly savings of the family:

0 200 200-400 400-600

600 800 800-1000 1000+

5. Place of savings:



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Others [ ] _____%

6. Credit taken (if any):

(a) If yes then how much

100-500 [ ] 500-1000 [ ] 1000-1500 [ ] 1500 2000 [ ]

2000 - 2500 [ ] 2500 - 3000 [ ] 3000 - 3500 [ ] 3500 + [ ]

(b) Source of credit

Bank [ ] MFI [ ] SHG [ ] Informal [ ]

Relatives [ ] Any other (Specify) [ ]

(b) Rate of interest charged : ______% p.m Collateral (Y/N) : _____________________



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(E) What is the most critical input the family is missing to enhance its income/livelihoods?

.

(F) What is the most critical linkage the family is missing to enhance its income/livelihood?

.

(G) Planning for increasing family income:

The Idea: ..



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2) 2)

Linkages: ..

Market and other linkages

C. Consumption Details

1. Do you buy commodities from a particular shop?

If yes, why?

Reasonable prices

Good Quality Good Behavior Easy to reach Good Collection Provides Loan Barter facility Any other (Specify) _________________



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50 100 [ ] 101 150 [ ] 151 200 [ ] 250 300 [ ] 300 + [ ]

5. What is the frequency to visit the village shop?

Daily [ ] Alternate days [ ] 3-4 days [ ] Weekly [ ] Fortnightly [ ] Monthly [ ]

6. What would you distribute your entire expenditure of a month (for each 3000 Rs.)?

Sl. No. Expenditure Items Ranking % age share

1. Health

2. Hospitality

3. Ceremonies & Celebrations

4. Clothing

5. Fooding

6. Education



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(b.) If no, why?

______________________________________________________________________________

8. Your purchase inclination for the following products?

a. Solar light equipments : V. strong / Strong / Average / Poor / V. poorb. Mobile recharge coupons : V. strong / Strong / Average / Poor / V. poorc. Medicines (general) : V. strong / Strong / Average / Poor / V. poord. Calls with Mobile PCO : V. strong / Strong / Average / Poor / V. poore. Minor clothes : V. strong / Strong / Average / Poor / V. poorf. Comics/general books : V. strong / Strong / Average / Poor / V. poorg. Insurance (accident/life) : V. strong / Strong / Average / Poor / V. poor

h. Tailoring : V. strong / Strong / Average / poor / V. poor

I. Cycle repairing center : V. strong / Strong / Average / poor / V. poor

j. Electric/diesel irrigation pump

Facility : V. strong / Strong / Average / poor / V. poor

k. Agent for financial linkage : V. strong / Strong / Average / poor / V. poor


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45

9. Details of the commodities purchased:

Sl.

No.Categories Product Quantity Brand

Type of

Packaging

Freq. of

PurchaseP. o .P

Purchase

from

whom

Price

RangeRemarks

1

Pulse

2

3

4

5

6

Spices

7

8

9

10

11

12

13

14


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46

15

16

Oil

17

18

19

20

21

FMCGs

22

23

24

25

26

27

28

29

30

31

32


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47

33

34

35

36

Cereals

37

38

39

40

41

Other

Items

42

43

44

45

D. Details of items sold

Sl.Categories Product Form Quantity Season

Freq. of Point of Avg.Remarks


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48

No. Sale sale Rate/kg

1

Agriculture

2

3

4

5

6

ForestProduce

7

8

9

10

Place : ______________________ Date: _______________________


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49

Competitors Interview Questionnaire for Feasibility study

Date . 1. Shop..

2. Name of the Respondent .. 3. Location

4. What are the Products you sell?

S.No Product categories Major Selling Brands Price Range

1

2

3

4

5

6

7

8


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50

9

10

11

5.How do you transport the products

6. To how many villages you sell your products.

7. Do you move to any haat, if yes specify

8.Do the Prices varies by moving to haat

9.What is your wear house capacity?

10. What are services you provide to your customers?

Credits Yes/ No . Avg. Credit Limits ..

Interest rate (Monthly/ Annual) Avg. Recovery Period ..


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51

Recovery Mechanism Recovery Rate ..

12. What is the average consumption of grocery items of 30-40 households in a week.

11. Other services on rent.

S.No Services Rent amount (Rs.)

1

2

3

4

5

6

7

8


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52

Cost of technical requirements-:

Cabin ( Capacity @ 50 sq feet) 12,500

Land size is according to the cabin

Capital equipment list-:

Furniture1000

equipments 1000

others 500

Working capital-:

Vegetable

24,000

pulses 2,000

cereals

800

FMCGs 4,200

Spices 800

Oil 2,000

Others material cost 800

One Udyogi


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53

Return on sale

RATE OF RETURN ON SALE

Year year1 year2 year3 year4 year5

Sales 205,500 246600 295920 355104 426124.8

Profit 35100 43,020 52,554 64027.8 77832.66

Return on sale 17.080292 17.445255 17.75953 18.0307178 18.26523

ROI1 1.4989547 1.8311498 2.2309338 2.711939

feasibility study analysis of vlsc by satyapriya sahu123

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