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The proposed project
is for setting up a
SELF SRVING TEA
VENDING
MACHINES

Mohamed Rashid

INVEST IN TEA BIZ,
EARN MORE THAN
THREE TIMES

INVEST IN TEA BIZ, EARN MORE THAN THREE
TIMES IN FIRST YEAR THAT OF WHOLE
INVESTMENT
DISCLAIMER
The purpose and scope of this information memorandum is to introduce the subject
matter and provide a general idea and information on the said area
...
Although, due care and diligence has
been taken to compile this document, the contained information may vary due to
any change in any of the concerned factors, and the actual results may differ
substantially from the presented information
...
Therefore, the content of this memorandum should not be
relied upon for making any decision, investment or otherwise
...
The content of the information memorandum does not bin Author in any
legal or other form
...
The project pre-feasibility
may form the basis of an important investment decision and in order to serve this
objective, the document/study covers various aspects of the project i
...
concept
development, start-up, production, marketing, finance and business management
...

Project Profile
The proposed project is for setting up a SELF SRVING TEA VENDING
MACHINES
...
The document highlights
marketing, management and financial aspects required for the establishment of
successful venture
...


1

The unit will provide premium quality TEA to be sold in the desired market
...

Ninety percent of the good quality hotels are located at urban and semi urban areas
and cities that is there is no facility for people to drink teas of different quality
brands who located at rural areas
...
It has been assumed that a tea
vending machine can be serve 500 teas in a day subjects to its demand, like that the
proprietor will invest in 25 machines and accordingly they will sell 12500 teas in a
day
...
The said
machines will have total tea serving capacity of 3750000 yearly collectively
...
5 into the SELF TEA
VENDING MACHINE
...
Paper glass will be made available by
the business organisation near the machine
...
As the
need is increasing day by day due to the increase in population, investment can be
made any time during the year
...
also contribute to the
popularity and success of private sector Flour mill
...
Say for example
in schools and collages there is no facility to drink tea in break times, even this will
give a huge market for beginners
...
Although
the selection totally depends upon the choice of the entrepreneur, whereas the
financial aspects of this feasibility study is based on a Sole proprietorship, and the
operations would be directly supervised by the owner and run through professional
management
...

Suitable Location
The said project can be set up in any Schools, Collages, Universities, Railway
stations, Bus stations, Airports, Seaports etc
...
Only the
best quality wheat should be used
...

 Advance sale orders can ensure the success of the business
...

 Quality maintenance will play an important role as it is evident from the
behaviour of the general consumers that they are more specific towards health
issues than ever before
...

 Location of the project is of prime importance
...

 Continuous efforts should be made for up-gradation of the technology
...
A SWOT
analysis can help in analysing these factors, which play an important role in making
the decision
...
e
...

 Availability of low cost labor
 Product affordable to all income groups
 Wide range of target market
WEAKNESSES
 Strict controls over labor efficiency need to be observed to reduce the waste
production to a minimum level
...

 Inexperienced technical staff as compared to the units currently in operation
...

 A large number of people that are not brand loyal can be targeted through
marketing campaign
...


THREATS
 Already established businesses in same industry
 Fluctuation in the price of tea powder
...
That is given PROJECT COST
sheet
...
TEA VENDING AND COMPANY
PROJECTED BALANCE SHEET
LIABILITIES

Rs
...


Capital

1,450,000
...
00

Net Profit

8,008,839
...
00

Inventories

180,250
...
00

Cash in hand

183,750
...
00

Drawings

813,430
...
00

9,927,227
...


For 12500 cups
of Tea (one
day, with 25
machines)

(a)Tea Powder

1 kg

125
...
00

625kg

78,125
...
00

50kg

1,750
...
00

15000kg

525,000
...
00

875L

15,750
...
00

262500L

4,725,000
...
no

1

PARTICULARS

11
12
13
14
15
16
17
18

For 12500 cups
of Tea(for one
year)

Rs
...


Direct Material

Total

2
3
4
5
6
7
8
9
10

For 312500
cups of
Tea( for
one month)

Rs
...
00

1000L
12,500

1,225
...
s

60
...
00

25000L
312500n

30,625
...
00

250,000
...
00
2nos

37,500
...
00
9,187,500
...
00

25
...
00

15,625
...
00

1,310
...
00

818,750
...
00

72
...
87

45,096
...
00

1,382
...
87

863,846
...
00

Opng WIP

-

-

-

Clsng WIP

-

-

-

Net Working Cost(6+7-8)

1,382
...
15

Closing Finished Goods

300000L

937,500
...
87
34,553
...
75
863,846
...
75

10,366,161
...
00
-

Cost of Goods Sold(11-12)
Profit 44% on SALES PRICE 81% on
COST PRICE

1,382
...
87

10,366,161
...
85

27,946
...
25

8,383,839
...
00

62,500
...
00

18,750,000
...
76

2
...
76

2
...
24

2
...
24

2
...
00

5
...
00

5
...


7

M/s
...


Rs
...
00

B EXPENSES
Electricity

37476
...
00

Travelling

14808
...
00

Depreciation

147175
...
00

Rates and Taxes

30048
...
00

Rent for Building

90000
...
00

Miscellaneous

24438
...
00

C Net Profit before taxation

8008839
...
70

Net profit after taxation

5606187
...
TEA VENDING AND COMPANY
PROJECTED TRADING ACCOUNT FOR ONE MONTH
PARTICULARS

DAILY

MONTHLY

YEARLY

61,250
...
00

18,375,000
...
00

9,825,000
...
00
32,750
...
00

818,750
...
00

9,825,000
...
00

ASSUMPTIONS
*Closing stock is not disclosed, instead it is merged with manufactoring cost
...
TEA VENDING AND COMPANY
PROJECTED TRADING ACCOUNT FOR ONE MONTH
PARTICULARS

Rs
...


Rs
...
00

(b)Sugar

542,500
...
00

(d)Paper cups

3,100,000
...
00

Closing stock
(a)Tea Powder

31,250
...
00

(c)Milk

31,500
...
00

180,250
...
00

C DIRECT EXPENSE

9,187,500
...
00

MANUFACTURING TRANSFERRED TO
C TRADING ACCOUNT

9,825,000
...

*Another possible treatment of Closing stock just write off in Statement of
Profit and Loss
*Closing stock details is given below for
reference
Closing stock

655
...
00

196,500
...
No

Items

Opening

Rate

Depreciation

Value
I

Value

Plant and Machinery
Tea vending Machine (Rs
...
s )
Stove

875000
...
00

131250
...
00

6000
...
00

Total

900
...
00

20000
...
00

Refrigerator

IV

Closing

3000
...
00

901000
...
00 765850
...
00

5
...
00

4750
...
00

5
...
00

7125
...
00

11875
...
00 60
...
00

7200
...
00 10
...
00

5400
...
00

Electrical and Electrifications
Total

937500
...
00 790325
...
00

Building

Rented

Building Deposit

100000
...
00

Working Capital

38852
...
75

Preliminary Expenses

25000
...
75
209289
...
00

Transportation

59,952
...
00

Telephone Charges

30,636
...
00

Loading

60,000
...
00

Packing Materials

16,232
...
00

Bank Charges

30,396
...
00

Total
Production
Production overhead per unit

541,161
...
00
0
...


Schedue of current assets
Inventories
Tea powder

31,250
...
00

Milk

31,500
...
00
180,250
...
00

Bank

143,240
...
00

Total

507,240
...
00

Cash credit

-

Working Capital

38,852
...
25

8008839
...
58

8809722
...
90

9610606
...
06

10011048
...
23

10411490
...
00

18375000
...
50

19293750
...
00

20212500
...
50

21131250
...
00

22050000
...
50%

1875781
...
00

7

25%

1914062
...
00

8

27%

1944687
...
00

9

29%

1975312
...
00

10

30%

1990625
...
00

15

77%

1000000
...
00

13



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