General:

1. 2. 3.

Name of the Firm Project Location

4. Type of Organization 5. Address

: Veni Cola Beverages : Wine Industry : 15 KM from the Bijapur City : Sole Trading Concern : Near industrial area Gunnapur road BJP : C Y KUCHABAL : 10-11-1984

6. 7.

Name of chief promoter Birth Date

Educational Qualifications:
Standard % of Marks 7th 78.83% 10th 72.50% 12th 75.00% BBA 74.00% Institute St. Theresa St. Theresa V.B.Darbar IBM Major Subject ------------------------PCMB Marketing Year of Passing 1995 1998 2000 2003

Special Training:
Training in Tally Accounting Institute Ram Krishna Accounting Duration Remarks 3 Months Very Good

Work Experience:
Organization Manish Electricals Abhishek Appliances Position Accountant Nature of Work Accounting Duration 3 months 6 months

Representative Sales

(I) Promoters annual income: Rs. 1, 20,000 (last Year)

(II) Assets Owned by the promoter(s) Movable : Rs. 5, 00,000 Immovable: Rs. 13, 50,000

Details of the proposed project It is a manufacturing sector. Land & Building:

S.No Particulars 1 Land 2 Building i. Production ii. Fermentation iii. Aging & Storage iv. laboratory Area Required 1 Acre 7,500 sq.ft 6,000 sq.ft 10,000 sq.ft 5,000 sq.ft Total Value 13,50,000 Total Value 3,50,000 10,00,000

Machineries / Equipments:
S.No 1 2 3 4 5 6 7 8 Description Crusher Juice Extractor Liquor Digester Fermentation Tanks(100 liters ) Weighing Scale Corking Machine Filler Hexagonal Tiles Total value Nos. Required 1 1 1 60 1 1 1 5000 Rates 35,000 60,000 1,10,000 2000 18,000 28,000 26,000 20 Total Value 35,000 60,000 1,10,000 1,20,000 18,000 28,000 26,000 1,00,000 4,97,000

Preliminary & Pre Operative Expenses:

S.No 1 2 Particulars Establishment Expenses i. License Start Up Expenses i. Office Furniture, A/c, stationary etc ii. Factory Ventilation Miscellaneous Expenses Total Value Amount Rs. 2,00,000 Rs. 60,000 Rs. 40,000 Rs. 1,00,000 Rs. 4,00,000

3.

Working Capital:
S.No 1 2 3 4 5 Item Raw Materials Labors(30) Power Transport Misc. Exp Total Duration Per day Per day Per day Per day Per day Total Value 17,500 1,200 400 500 500 20,100

Total cost of the Project:

S.No 1 Particulars Fixed Capital i. Land & Building ii. Machineries Working Capital Preliminary & Pre-Operative Expenses Misc Expenses Total Value Total Value 13,50,000 4,97,000 5,00,000 4,00,000 2,53,000 30,00,000

2 3 4

Source of Finance:
S.No 1 2 3 Particulars Own Investment Term Loan Working Capital Total Value Amount 10,00,000 15,00,000 5,00,000 30,00,000

Market Potential Present Demand & Supply of Product

The present demand for the wine in Karnataka state is nearly 6 crores per month.

Competition:
In Karnataka in the product range there are many competitors but GOLCANDA RUBY wine is the main competitor.

Target Clients:
Our target customers are mostly middle class people

Selected Market Area:

Our selected area is whole Karnataka state.

Manufacturing Process:
Winemaking is an art that is influenced by science more and more each year. Barefoot grape stompers have given way to machines crafted to gently extract the juices without destroying the skins. Fermentation is carefully controlled. And yet, with all of the science, it still comes down to a flavor mix to please the winemaker's palate. The steps listed below explain how a red wine is typically made. Depending on the type of wine, the stems could be left in (for a more tannic flavor) or removed. This mix of wine is called must and is put into a fermentation vat. For red wines, the skins are left with the grapes during fermentation to impart the red color and tannic flavor.

Fermentation:
The must is held in a stainless steel vat for crisper reds, or in oak barrels for more mellow reds. In whichever container, the sugars inside the grapes are turned into alcohol by yeasts. Some wineries use only the naturally occurring yeasts that are found with the grapes. Others have cultured yeasts that they use year after year. This fermentation process typically takes from 3-4 weeks. The solids (skins and stems) in the mixture float to the top, where they are pushed back down into the mixture. They are removed from the mix when the liquid has gotten the right amount of flavor and color from it. Temperature is

very important during this stage - it also affects flavor and color. Often cooling pipes or even garden hoses with holes in them are run around the vats, to maintain the correct temperature. When fermentation is complete, the first run off from the vat is called the vin de goutte. Next, the mixture is pressed and the vin de presse comes out, dark and tannic. These two are mixed proportionally for flavor, and the result is put into oak barrels.

Aging:
Aging can be done in barrels, or now it is even done in stainless steel vats with oak chips along their bottoms. Often, during aging, a special bacterium is added which allows malolactic fermentation to occur. This additional fermentation, often noted with a "ML" on the barrel being used, converts the malic (sharp) acid into a lactic (mild) acid. Barrel aging in general allows the wine to absorb some of the flavors of the barrel, giving it an oaky and smooth taste. The wine is stored for anywhere from 9 months to 2 1/2 years to give it the correct amount of flavor. It is then put into bottles, and these bottles are aged even further, both by the winery and also by the consumer, to bring the wine to the perfect point for consumption.

Storage:
Hexagon Storage Tiles:
Large quantities of individual tile are available for constructing wine cellars. Sandkuhl Clay Works, Nagpur. A terra cotta tile in a unique hexagon shape that stacks quickly and easily into a wall without structural containment.

Raw Materials Required:

Raw materials for wine production include grains like maize or wheat and fruits such as sweet orange, citrus, grape, cashew, paw-paw, pineapple, mango and cocoa. Others include tubers such as carrot and potatoes and other additives. All these are 100 per cent locally available. The choice of raw material depends on the envisaged brand of wine. Water is a common input which accounts for up to 70 per cent.

Plants, Machinery & Equipment:

Machinery and equipment include the crusher, juice extractor, liquor digester, fermentation tank, strainer, filler, corking machine and weighing scale. Auxiliary equipment include knives, hydrometer. Plastic containers and buckets. Again, all these are locally available.

Production Process:
Production process involves raw materials sourcing, selection, cleaning, peeling crushing and extraction. Other steps include digestion, cooling, straining, fermentation, ageing, clarification, pasteurization and bottling.

Production Programme:
No. of working days per annum - 310 days No. of working shifts (8 hrs per day) - 1 Installed Capacity (per day) - 1250 liters

Sales Revenue:
Year I Year II Year III Year IV Year V Year Item 180 ml bottle 180 ml bottle 180 ml bottle 180 ml bottle 180 ml bottle Quantity Sold per year 3,50,000 8,00,000 8,00,000 9,50,000 9,50,000 Rate Total Sales per Unit 16 16 16 16 16 56,00,000 1,28,00,000 1,28,00,000 1,52,00,000 1,52,00,000

Raw Materials (Per Day)

S.No 1 2 3 4 5

Item Water Grapes Other items Bottle Total Value

Quantity 900 liters 600 kgs 6000

Rate 1 5 2

Total 900 3000 1600 12000 17500

Utilities (Per Annum):

S.No Particulars 1 Power Electricity 2 Water Amount 3,00,000 10,000

Man Power (Salaries/Wages):

S.No 1 2 3 4 Particulars CEO Skilled Unskilled Managers Total No 1 6 20 2 Wages/ Salaries 275 150 40 250 Annual Expenses 96,000 3,24,000 2,88,000 1,80,000 8,88,000

Repairs & Maintenance (Per Annum):

S.No 1 2 3 Particulars Building Machinery Others Amount 1,00,000

Selling & Distribution (Per Annum):

S.No 1 2 3 4 5 Particulars Publicity Expenses Traveling Freight Commission Misc. Total Amount 2,00,000 50,000 50,000 1,00,000 1,00,000 5,00,000

Administrative Expenses (Per Annum):

S.No 1 2 3 Particulars Stationary & Printing Post / Telephone / Telegrams Misc Total Amount 2,00,000 50,000 50,000 3,00,000

Interest (Per Annum):

Year I Year II Year III Year Outstanding Loan Amt 20,00,000 15,00,000 5,00,000 Interest 1,80,000 1,35,000 45,000 Balance 20,00,000 15,00,000 NIL

Depreciation (Per Annum):

S.No Type of Asset 1 2 3 Cost of Asset Crusher 35,000 Juice Extractor 60,000 Liquor 1,10,000 Expected Life 5 5 5 Depreciation 3,500 6,000 11,000

Digester 4 Fermentation 1,20,000 3 1,200 Tanks(100 liters S.No Particulars ) Amount 5 Weighing- Year 18,000 5 1,800 IV - Year I II - Year III - Year V - Year Sales Scale A Realization 6 Corking 56,00,000 1,28,00,000 1,28,00,000 1,52,00,000 1,52,00,000 28,000 5 2,800 Cost of Machine B Manufacturing 7 Filler 26,000 5 2,600 1 Raw Materials 21,00,000 63,00,000 63,00,000 72,00,000 72,00,000 Total value 28,900
2 Utilities 3,10,000 Salaries / 3 Wages 8,88,000 Repairs & 4 Maintenance 1,00,000 5 Sell & Dist 5,00,000 Administrative 6 Exps. 3,00,000 7 License Fees 2,00,000 8 Depreciation 29,000 9 Total 44,27,000 Gross Profit (A B) 11,73,000 Income Tax 4,69,200 Net Profit 7,03,800 Interest 1,80,000 Net Profit Interest 5,23,800 Repayment of Interest 5,00,000 & Principal Retained Surplus( E2F) 23,800 PAR= E2/ F 1.096 6,90,000 6,90,000 7,20,000 7,20,000 15,00,000 2,00,000 9,00,000 15,00,000 2,00,000 9,00,000 16,00,000 2,00,000 12,00,000 16,00,000 2,00,000 12,00,000

6,00,000 6,00,000 7,00,000 7,00,000 2,00,000 2,00,000 2,00,000 2,00,000 29,000 29,000 29,000 29,000 1,04,19,000 1,04,19,000 1,18,49,000 1,18,49,000 23,81,000 9,52,400 14,28,600 1,35,000 12,93,600 10,00,000 23,81,000 9,52,400 14,28,600 45,000 13,83,600 5,00,000 33,51,000 13,40,400 20,10,600 ZERO 20,10,600 ZERO 33,51,000 13,40,400 20,10,600 ZERO 20,10,600 ZERO

C D E E1 E2 F

G H

2,93,600 8,83,600 1.3326 III - Year

20,10,600 IV - Year

20,10,600 V - Year

Profitability Projections: