ravi foods - an investment proposal to set up a dairy farm and an agri-marketing company

RAVI FOODSJOINT DAIRY FARM, AGRI-MARKETING COMPANY AND BRAND

PROPOSALEmail: [email protected]

A project of Training Pakistan Private Limited (TPPL) www.trainingpakistan.com

Objective To be the trusted local, home

delivery, provider of daily fresh milk and grocery items.

A project of Training Pakistan Private Limited - www.traininigpakistan.com - [email protected]

http://www.traininigpakistan.com/

mailto:[email protected]

Proposal Establish a dairy farm on premises (as entry

strategy) for direct-to-consumer milk sales at premium prices

Create an agri-marketing company with its own brand

Leverage the existing infrastructure, location and most importantly the 5km radius premium market with localized, B2C, online ordering trends with grocery items.

Provide farmers (fruit/veg/grain and livestock producers) training and product buy-back agreement

Ensure marketing and sales of farmers’ productsA project of Training Pakistan Private Limited - www.traininigpakistan.com - [email protected]



Trends

1. Local / Neighborhood retailers2. B2C – home delivery3. Payment on Delivery (PoD)

successful4. Online orders5. Preference for Fresh and Organic

products




Strategy

1. Invest in own dairy farm and start with dairy milk sales as entry strategy

2. Phase in additional products3. Build a farmers network 4. Build and test systems (database,

sales etc)5. Replicate model in other regions /

areas

Build TRUST with fresh, quality milk




Core Products

1. Dairy – fresh milk (unpasteurized, sealed glass bottles/PP bags)

2. Fruit and Vegetables 3. Value added products4. Poultry (eggs – chicken, duck etc.)5. Meat (Chicken, Mutton, Beef, Quail)6. Bakery Items7. Organic and Natural Foods Range8. Processed Food Items

Provide a trusted milk

brand and be the ‘neighborhood

dairy farm’




TPPL’s proposition

Ravi Foods

Training Pakistan

Private LimitedInvestor(s)

Training Pakistan will hold 50% of shares

Investor(s) will hold 50% shares




TPPL’s proposition 11. Unmatched accessibility to

higher-end society buyers & consumers

2. Location of facility inside Lahore3. 15 acres with developed

infrastructure4. 50,000,000 PKR of

dairy/livestock infrastructure (minus land) in place

5. Industrial Electrical Connectivity - valued at 5 million PKR

Here’s what Training Pakistan brings to the table




Location Map of Training Pakistan Campus




Topographic Map of Training Pakistan Campus




TPPL’s proposition 26. A staff of leading veterinary

experts and student body undertaking Livestock Assistant courses

7. Leading animal nutrition experts

8. Network of Fruit and Vegetable (F&V) farmers

9. Experience in F&V marketing10. Network of organic and natural

foods producers and processors

Here’s what Training Pakistan brings to the table




TPPL’s proposition 3 – projected additions

11.Solar Powered electricity support12.Network of farmers &

entrepreneurs trained to produce required products to set standards




Activities on TPPL Campus - 1




Training Pakistan Associations1. Company incorporated with SECP2. Member of Lahore Chamber of

Commerce and Industry (LCCI)3. Affiliated with University of

Veterinary and Animal Sciences (UVAS)

4. Registered with National Training Bureau (NTB) and registration for TEVTA under process




Current Activities on TPPL Campus

Updated activities can be viewed at:

1. www.trainingpakistan.com 2. www.facebook.com/trainingpakistan


http://www.trainingpakistan.com/

http://www.facebook.com/trainingpakistan



Target Market: Housing Societies

1. Park View Villas2. DHA EME Housing Society 3. Bahria Town4. Green Forts 25. Izmir6. Tricon Village7. Rajput Town / Muhafiz Town / Eden8. Later on: Johar Town, Wapda Town,

Valencia, NFC etc.A project of Training Pakistan Private Limited - www.traininigpakistan.com - [email protected]



Target Market: Retail & Corporate

1. Retail stores: F&V, Meat, Poultry, Natural/Organic foods, Processed Items

2. Caterers: Meat3. Canteens: F&V (b and c grade F&V)4. HORECA: F&V (b and c grade F&V

and meat)




S.W.O.T

Strengths Market at doorstep: Accessibility to growing

high-end housing societies within a 5 km radius 15 acre facility that can be used to scale up Expertise in livestock rearing, fruit and veg, and

grocery items sectors On-campus expertise of veterinarians and

animal nutrition experts Expertise in agriculture production Experience in livestock and agri production Modern slaughterhouse next door for value

addition of meat cutsA project of Training Pakistan Private Limited - www.traininigpakistan.com - [email protected]



Weaknesses

Capital investment Limited experience in running an

actual dairy farm




Opportunities1. Local retail stores or businesses have been a global trend

with strong sales over mega stores/businesses2. Online sales3. Home delivery sales are growing and a proven model4. Payment on Delivery (PoD) has been successful in

Pakistan and growing5. Rapid growth in organic, natural, fresh and health foods6. Daily grocery items have inelastic demand 7. Far too much adulterated & harmful dairy milk being sold8. Farmers (F&V/Grains and Livestock owners) fail to get

premium market prices due to lack of marketing exposure9. Farmers are interested to learn new technologies if they

can get higher returns and marketing channels are provided to them




Threats

Competitors: setting up online portal Ease of entry for home deliveries like

F&V




Core products

1. Dairy: Milk (unpasteurized, in glass bottle/PP bag, branded)

2. Fruit and Vegetables3. Value added products 4. Bakery Items5. Meat & Poultry6. Grains & Pulses (wheat flour, rice,

lentils etc.)7. Organic / Natural / Healthy

40-50% of monthly

household retail budget




Premium Price Point - Milk

Milk Processors Open Milk Sellers (Gavala) B2C Model0

10

20

30

40

50

60

70

80

90

100

60

80

120

Milk Sale Prices (PKR / Liter)

Milk Sale Prices (PKR / Liter)A project of Training Pakistan Private Limited - www.traininigpakistan.com - [email protected]



Financial – Basic (monthly)

40% 20%Monthly

Household Budget

% Groceries

# of Household

s Rev Gross Profit

30,000.00

12,000.00

1000.00

12,000,000.00

2,400,000.00

Monthly Household Budget for core grocery products of target market area (non-dairy):




Non-Core Products

1. Seasonal products: Dates (ramzan), meat (eid)

2. Off-seasonal products: a) frozen fruit, b) vegetables

3. Beverages




Citrus Banana Apple Mango Strawberry Papaya Tropical Dates

Potato Onion Tomato Garlic Ginger Leafy: corriander,

mint, lettuce Peas Eggplant Saag, Palak Okra

Fruit Vegetables




Meat & Poultry

Mutton Chicken Beef Fish Quail Turkey Eggs




Bakery

Bread Buns Cakes




Organic / Natural / Healthy Organic Wheat Flour Organic Rice Organic Chicken Meat Grain-fed meat Gluten-free Specialty flours: moringa, and other

ingredients Honey




Value Added Products

Jam & jellies Pickles Dehydrated onion / ginger / garlic

powder and paste etc Juices Fries Select meat cuts




Processed Food Items

Dehydrated products: Coriander powder Garlic powder / paste Ginger powder / paste

Potato products Organic Jam / Jelly Olives and Olive products




Core-wise introduction to B2C - 1

Dairy: Milk

F&V

Meat & Poultry

Bakery

Organic & Natural Foods

Processed Foods


Company will operate its own dairy farm for milk sales



Phase-wise introduction B2C - 2 Cash flow from Dairy will be used to

add components of: F&V Meat and Poultry Bakery Natural/Organic foods Processed Food Items




Value Added Services

1. Ramadan sales: Dates Meat

2. Eid ul Azha Sacrificial animal sales: male calves of dairy

farm3. Sunday Bazaar Market: Specials for

registered customers4. Post harvest product sales (specialty

products: fusion honey, frozen fruit etc.)A project of Training Pakistan Private Limited - www.traininigpakistan.com - [email protected]



Phase 1

B2C – build 1,000 target consumers via dairy milk sales Sales pitch: consumers will have 24/7 IP

camera access to dairy milking parlor / chiller / packaging unit

Start building network of farmers and initiate short training courses




Phase 2

Reduce Dairy Milk profits to 50% of total profits

Add HORECA – 20% of total revenue Add additional geographical

locations within Lahore (expand B2C) Expand farmers networks




Phase 3

HORECA expanded to 50% of total revenue

Contract farming and locking suppliers networks

Expand distribution network Add dairy cooperative Add new cities for B2C




Phase 4

Expand dairy cooperative with range of value added products

Retail? Across the line range of branded

grocery products




Critical Components

1. Dairy Milk Sales as Entry Strategy2. Business Model of train farmers –

buy back products at better prices – sell to online buyer base / HORECA




A project of Training Pakistan Private Limited - www.traininigpakistan.com

Critical Components: Training Pakistan (existing) Business Model

Farmers produce

products of required quality

standards

TPPL buys / contracts produce

from its trained farmers

Conduct Training

Courses for Farmers

Critical Support Components

Online Portal Optimize: SEO Online marketing

Sales & Order Processing Team Database Management Farmers training and support

network Logistic and Supply Chain

Management Customer Service Team CCTV Cameras – 24 hour access

Online / web presence is crucial to building trust with client base




Investment requirement1. Dairy animals – minimum of 65 purebred Holstein cows2. Milking parlor 3. Small Bottling plant4. Pasteurization unit (if needed)5. Chiller6. Chiller transport van7. 8 months of farm operational costs including for dedicated

staff, manager, and most of all feed + fodder requirements 8. Additions to infrastructure to ensure high yields

Climate Controlled walls for existing shed with negative pressure fans set up

Spray fans, head catchers etc. 9. Miscellaneous items: CCTV cameras, IP connectivity, etc. 10. Marketing and Sales budgeting




Investment – in Numbers Dairy Investment: 4 – 6 crore PKR (40-60

million rupees or approx. US $550,000) Holstein cows: USA 400,00o PKR (European if

available are priced at 300,000 or so PKR) Chiller Chiller Van Milking Parlor Bottling Plant Add climate control walls and controls with

existing shed Generator set




TOR - Fundamentals

1. Share division of new brand/company: 50% TPPL and 50% Investor(s)

2. Joint management of company with assigned roles/responsibilities

3. Exit Clause (in case of worst case scenario): Investor’s 1st generation livestock and movable investments (chiller, chiller van, bottling plant etc) will be assets the investors can walk away with. 2nd Generation livestock will be assets equally shared between TPPL and Investor(s)

4. Additional terms can be discussedA project of Training Pakistan Private Limited - www.traininigpakistan.com - [email protected]



Contact for Queries

Email: [email protected]

Phone: +92 423 7512649 or +92 300 846 9255

Website: www.trainingpakistan.com

FB: www.facebook.com/trainingpakistan.com



http://www.trainingpakistan.com/

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THANK YOU


