Under this model, the payback period is around 9-12 months.
Under this model, break-even sales are achievable on sales of 9 lac per month.
|Monthly Expenses||Investment||Payback Period|
|Fuel Cost Per Month||25000||Reefer Van||1000000||Monthly Sale||2000000|
|Driver Salary||15000||Walk In Freezer||450000||Monthly Variable Expense||1700000|
|Support Person Salary||10000||Working Capital||1000000||Gross Profit||300,000|
|2 Sales Person Salary||30000||1 Bike||50000||Monthly Fixed Expenses||135170|
|Loading & Unloading Exp.||10000||Net Profit||164830|
|*Avg. Interest Cost||10170||Ideal Payback Period||9 - 12 Months|
|Total Fixed Monthly Expenses||135170||Distribution Margin||10%|
|*Avg. Principle Repayment||23810||Total||2500000||Additional Margin(1st year)||5%|
Sales volumes are expected to grow at 20%, while the prices are kept constant. This will directly increase the revenues by 20%. Majority of the costs, being variable, are also expected to rise by 20% year-on- year. The manpower cost is expected to rise at 10%. The assets are depreciated using straight line method with a useful life of 7 years. The residual value is assumed to be zero. In general, the walk-in freezer and the frozen truck has a useful life of more than 7 years.
|1||Food Safety Licence||Yes|
|Authority To Approach||FSSAI www.foodlicensing.fssai.gov.in (By going through this web site, any one can fill the form state wise & apply for FSSAI License. Fees is 7500 for 1 year.)|
|Authority To Approach||Local Civil Authorities In case of Delhi there is site , www.mcdonline.gov.in , under this trade licence can be filed. Other cities may have site or forms can be filled manually|
|Authority To Approach||Chief Fire Officer of Particular City|
|Authority To Approach||Pollution Control Committee of City|
The investment required is Rs.25 lacs. Out of the total amount, Rs.5 lac will be used for purchasing a walk-in freezer & Rs.10 lac for purchasing a small refrigerated truck. Rs.10 Lac will be used for working capital requirement. . In Case Franchisee requires Loan from bank he is expected to bring in a minimum of 20-25% and the balance will come as bank loan and eligible incentives. The loan is repayable within 7 years. The repayments are expected as per the bank norms. The Debt Service Coverage Ratio is very comfortable throughout the loan tenure. The Franchisee will have to apply for the loan Himalaya will guide the Franchisee on various schemes to revise loan from bank and completion of document. The most popular schemes are Stand-Up India & Mudra loan. .
Himalaya will provide all financial details to the applicant to the bank and advise on the scheme so as to facilitate to sanction of the loan by the bank. Franchisee will be responsible to meet the bank and complete all formalities, documents etc to sanction of the loan. The most popular schemes are Stand-Up India & Mudra loan.