Executive Summary
This project report outlines the establishment of a small-scale agro-processing unit in Uttarakhand, North India, under the brand “Pahadi Pure”, focusing on processing and packaging local Pahadi grains, pulses, millets, and other long-shelf-life agro-products. The unit will leverage Uttarakhand’s rich agricultural heritage, particularly its organic millets, pulses, and grains like rajma, gahat, mandua, and amaranth. With an initial investment of ₹4,50,000, the business aims to cater to local and urban markets, emphasizing organic, high-quality products. The unit will achieve a monthly breakeven sales target of ₹1,80,000 and an annual sales target of ₹24,00,000, with a projected profit margin of 20-25% in the first year. The setup will use semi-automatic machinery and a lean workforce to ensure cost efficiency and scalability.
1. Business Overview
1.1 Industry Background
Uttarakhand’s agro-processing sector is gaining momentum due to rising demand for organic and regional products. The state is a hub for millets (mandua, jhangora), pulses (gahat, rajma), and grains, supported by its favorable agro-climatic conditions. The Indian millets market is projected to grow at a CAGR of 9.5% through 2025, driven by health-conscious consumers and government initiatives like the National Mission on Millets. Uttarakhand’s proximity to urban markets like Delhi and Dehradun enhances its potential for both domestic and export sales.
1.2 Business Concept
Pahadi Pure will process and package organic Pahadi grains, pulses, and millets, focusing on value-added products like pre-cleaned grains, millet flours, and ready-to-cook mixes. The unit will operate from a 1,200 sq. ft. rented facility in Dehradun, utilizing semi-automatic machinery to maintain low costs. Products will target health-conscious consumers, local retailers, and e-commerce platforms.
1.3 Brand Name and Product Ideas
- Brand Name: Pahadi Pure – Reflects authenticity, purity, and Uttarakhand’s Himalayan heritage.
- Product Ideas:
- Mandua (Finger Millet) Flour: Organic, gluten-free flour for rotis and health foods.
- Gahat (Horse Gram) Dal: Pre-cleaned, high-protein pulses for soups and curries.
- Rajma Chitra: Premium Pahadi kidney beans, packaged for urban markets.
- Jhangora (Barnyard Millet) Mix: Ready-to-cook porridge or khichdi mix.
- Amaranth Snacks: Roasted amaranth seeds for health-conscious consumers.
- Pahadi Spice Blends: Value-added spice mixes using local herbs for cooking.
2. Market Analysis
2.1 Target Market
- Health-Conscious Consumers: Urban buyers in Delhi, Dehradun, and NCR seeking organic, gluten-free products.
- Local Retailers: Grocery stores and supermarkets in Uttarakhand and nearby states.
- E-commerce Platforms: Amazon, Flipkart, and BigBasket for online sales.
- Export Markets: Middle East and Europe, where demand for organic millets is growing.
- Hotels and Restaurants: Supplying bulk grains and flours to cafes and health food outlets.
2.2 Competitor Analysis
- Major Players: Bagrry’s, 24 Mantra Organic, and Patanjali dominate the organic food market.
- Competitive Advantage: Pahadi Pure will focus on regional authenticity, organic certification, and competitive pricing to differentiate from larger brands.
2.3 Market Trends
- Growing demand for organic and millet-based products due to health benefits (gluten-free, high-fiber).
- Increased government support through schemes like PMKSY and PLISMBP for millet-based products.
- Rising popularity of e-commerce and direct-to-consumer sales.
- Preference for sustainable, recyclable packaging materials.
3. Operational Plan
3.1 Location
- Space: 1,200 sq. ft. rented facility in an industrial area of Dehradun, Uttarakhand, for proximity to raw material sources and urban markets.
- Rental Cost: ₹20,000/month (₹2,40,000 annually).
3.2 Machinery and Equipment
The unit will use semi-automatic machinery to optimize cost and efficiency. Equipment includes:
- Grain Cleaning Machine: ₹1,00,000 (for sorting and cleaning grains).
- Milling Machine (for Millet Flour): ₹80,000.
- Roasting Machine: ₹50,000 (for amaranth and snacks).
- Packaging Machine (Semi-Automatic): ₹60,000.
- Weighing Balance and Hand Tools: ₹20,000.
- Total Machinery Cost: ₹3,10,000.
3.3 Raw Materials
- Mandua (Finger Millet): ₹50/kg (sourced from local FPOs in Uttarakhand).
- Gahat (Horse Gram): ₹80/kg.
- Rajma Chitra: ₹100/kg.
- Jhangora (Barnyard Millet): ₹60/kg.
- Amaranth Seeds: ₹120/kg.
- Packaging Materials (Recyclable Pouches): ₹15,000/month.
- Monthly Raw Material Cost: ₹60,000 (for 1,000 kg production).
3.4 Manpower
- Skilled Workers: 2 workers for machine operation and processing (₹15,000/month each).
- Unskilled Workers: 2 workers for packaging and cleaning (₹10,000/month each).
- Supervisor/Manager: 1 person for quality control and marketing (₹20,000/month).
- Total Monthly Labor Cost: ₹70,000.
3.5 Manufacturing Process
- Procurement: Source organic grains, pulses, and millets from local farmers and FPOs.
- Cleaning and Sorting: Use grain cleaning machine to remove impurities.
- Processing: Mill grains into flour, roast amaranth, or package whole grains/pulses.
- Packaging: Pack products in eco-friendly, airtight pouches with branding.
- Quality Control: Ensure organic certification and consistent product quality.
3.6 Licenses and Permits
- Business Registration: MSME/Udyam Registration (₹5,000).
- GST Registration: Mandatory for tax compliance (₹5,000).
- FSSAI License: Required for food processing (₹10,000).
- Organic Certification: For credibility in the organic market (₹20,000).
- Total License Cost: ₹40,000.
4. Financial Plan
4.1 Initial Investment
| Item | Cost (₹) |
|---|---|
| Machinery and Equipment | 3,10,000 |
| Licenses and Permits | 40,000 |
| Initial Raw Materials (1 month) | 60,000 |
| Rental Deposit (3 months) | 60,000 |
| Miscellaneous (Utilities, Setup) | 40,000 |
| Total Initial Investment | 4,50,000 |
4.2 Monthly Operating Costs
| Item | Cost (₹) |
|---|---|
| Raw Materials | 60,000 |
| Labor | 70,000 |
| Rent | 20,000 |
| Utilities (Electricity, Water) | 15,000 |
| Marketing and Distribution | 20,000 |
| Miscellaneous | 5,000 |
| Total Monthly Cost | 1,90,000 |
4.3 Revenue Projections
- Production Capacity: 1,000 kg/month (mixed products: 500 kg flour, 300 kg pulses, 200 kg snacks).
- Selling Price (Average): ₹180/kg (flour: ₹200/kg, pulses: ₹150/kg, snacks: ₹250/kg).
- Monthly Revenue: 1,000 kg x ₹180 = ₹1,80,000.
- Annual Revenue: ₹1,80,000 x 12 = ₹21,60,000.
- Profit Margin: 20-25% (after deducting operating costs).
- Monthly Profit: ₹1,80,000 – ₹1,90,000 = Loss in initial months; profitability achieved after scaling to 1,200 kg/month.
4.4 Breakeven Analysis
- Breakeven Sales Volume: ₹1,90,000 / ₹180 per kg = 1,056 kg/month.
- Breakeven Timeline: Achievable in 3-4 months by increasing production to 1,200 kg/month and optimizing marketing.
4.5 Annual Sales Target
- Target: ₹24,00,000 (1,200 kg/month x ₹180 x 12 months).
- Strategy to Achieve:
- Scale production to 1,200 kg/month within 6 months.
- Secure contracts with 3-4 local retailers and 1 export buyer.
- List products on Amazon and BigBasket for online sales.
5. Marketing Strategy
5.1 Branding and Positioning
- Brand Identity: Position Pahadi Pure as an authentic, organic brand rooted in Uttarakhand’s heritage.
- Packaging: Use recyclable, biodegradable pouches with vibrant designs highlighting Himalayan origin.
- USP: Organic, locally sourced products with health benefits and regional authenticity.
5.2 Marketing Channels
- Local Distribution: Partner with retailers in Dehradun, Haridwar, and Delhi.
- Online Sales: List on Amazon, BigBasket, and create a website (₹25,000 setup cost).
- Social Media Marketing: Use Instagram and Facebook for targeted ads (₹15,000/month budget).
- Community Engagement: Participate in local fairs and organic food festivals.
- Export Opportunities: Use IndiaMART and APEDA to connect with international buyers.
5.3 Sales Strategy
- Offer bulk discounts to hotels and health food stores.
- Introduce subscription models for regular urban customers.
- Collaborate with yoga retreats and wellness centers for millet-based products.
6. Risk Analysis
- Market Risk: Competition from established organic brands. Mitigation: Emphasize regional authenticity and competitive pricing.
- Operational Risk: Supply chain disruptions for raw materials. Mitigation: Tie up with multiple FPOs and maintain a 1-month inventory.
- Financial Risk: Initial losses due to low sales. Mitigation: Start with low production and scale gradually.
7. Growth Plan
- Year 1: Achieve breakeven by month 4, establish local market presence, and list on e-commerce platforms.
- Year 2: Increase production to 1,500 kg/month, expand to NCR markets, and secure 1 export contract.
- Year 3: Invest in additional milling and roasting machines (₹1,50,000) to reach 2,000 kg/month and target ₹36,00,000 in annual sales.
8. Conclusion
The Pahadi Pure agro-processing unit is a viable small-scale business with an initial investment of ₹4,50,000. By capitalizing on Uttarakhand’s organic grains, pulses, and millets, and leveraging e-commerce and export opportunities, the business can achieve breakeven within 4 months and generate ₹24,00,000 in annual sales by year 1. With a focus on organic certification, sustainable packaging, and strategic marketing, Pahadi Pure has the potential to become a leading brand in the organic food market.