Pikskip Trail

8/2/2019 Pikskip Trail

1/69

1

BUSINESS PLANOn

Flavouring Straws

Submitted by,

Sneha Sasane (46)


2/69

2

11.. EEXXEECCUUTTIIVVEE SSUUMMMMAARRYY

Tired of drinking boring unflavoured milk and just water? Tired of having to mix in

flavoured chocolate powders or syrups? Well you need to try out the cool new PIKSIP

Flavouring Straws. The un i q ue PIKSIP straw contains tiny flavoured beads

that dissolve as you suck the milk through the straw. Simply dip, sip and enjoy; nomess. Although milk from the cow is processed, it is not an engineered or fabricated

food Milk contains proteins, carbohydrates, water-soluble vitamins, and minerals.

These nutrients help make it natures most nearly perfect food.

Milk products contain high quality proteins, needed to build and repair body tissues

and to form antibodies that circulate in the blood and help fight infection. Also as the

life in cities becoming hectic, people need something that can fulfil the thirst with

comfort.

PIKSIP Milk and Water flavouring straws are trying to enter the market at a time when

the popularity of milk and thirst of people is at an extremely high and forecasted to

continue its ascension.


3/69

3

11.. CCOOMMPPAANNYY PPRROOFFIILLEE

6 Stars Private Limited is the manufacturer of the PikSip flavouring straws. The

company will directly get straws as a raw material and prepare different flavour beeds

and put it in the straws with filters on both the sides and thus manufacture the

flavouring straws. We assemble PikSip Flavour straw products in state-of-the-art and

high-capacity manufacturing facilities that meet the key international accreditations

and certifications.

PikSip Flavour Straw-System(PFS)

The multi-taste winning PikSip Flavour Straw-System (PFS) is the good energy

straw - our patented straw-drinking technology. The PFS can add flavour, and soon

energy, vitamins, nutrition - and even pharmaceuticals - to liquid sipped through it.The PFS is not just a new product it is the basis of a whole new category of products.

It will change the way people consume beverages globally, and have a positive impact

on the lives of millions of people around the world.

Our Vision

Our Vision is to build a sustainable business based around high standards of ethical

behaviour towards all our stakeholders while at the same time making a positive

contribution to the economic and physical well being of the communities with which

we interact.

Our Mission

Our mission is to work together with our partners to discover, produce, and deliver

new value- added functional ingredients and ingredient systems which can be used to

add health and wellness to everyday foods and beverages.

Factory Details

Location of the factory: Asangaon, MaharashtraWhy such a location?

The new units set up here get 30% INDUSTRIAL Promotion Subsidy, Stamp Duty

Exemption, Electricity Duty exemptions, Income Tax Rebates and Seed Capital

Benefits besides preference in Government of India & DGSD Contracts, NSIC benefits,

limited Excise Benefits, low Labor and Property Tax Rates. Also, as the factory

involves continuous production of raw materials the factory should be situated near

the raw materials.

Area of the Factory required: 8000 sq ft


4/69

4

Description of Machinery

Customized machinery from the following manufacturer:

Jiva Control Technologies Pvt. Ltd

795, 5th Main Road, Off Dr. Modi Hospital Road, Ii Stage Mahalakshmipuram,

Bengaluru, Karnataka - 560086 (India)

The company shall use four machineries for the production.


5/69

5

22.. PPRROODDUUCCTT OOFFFFEERRIINNGG

Pik Sip Milk flavouring straws are designed for the 3 -15 year old target market (and

the young-at-heart!). Children enjoy the wide range of flavours available. The wide

range of flavours include Chocolate, Banana, Caramel, Strawberry, Vanilla.There are

some amazing flavours being developed for the near future.

PikSip milk flavouring straws

Add just 15 calories / 61 kilojoules of energy per straw,

Contain no artificial flavours, natural colours, and no preservatives,

Contain no dairy products, nut products, and are gluten free.

One (1) serve of PikSip milk flavouring straws with reduced fat milk provides the

following nutritional benefits:

Protein for optimal growth and development 44% of the Recommended Dietary Intake of calcium for strong teeth and bones.

31% of the recommended dietary intake of riboflavin (vitamin B2) to help release

energy from food.

Benefits

Encouraging milk consumption in children and adolescents will ensure the delivery of

a range of positive health benefits. Milk based foods are the richest and most readily

absorbable source of calcium in the diet and milk is a convenient, staple food. Milk

drinking should be actively encouraged for the majority of children and adolescents.

Milk consumption in childhood and adolescence has been shown in a number of

retrospective studies to have positive effects on achieving peak bone density prior to

growth ceasing.

The ingenious PikSip milk flavouring straws have the ability to easily and simply turn

plain milk into flavoured milk. Nutritionally sound flavoured milk. Trials have

demonstrated that kids love the fun experience of drinking milk with a PikSip straw

even children who normally refuse to drink milk.

PikSip Juice flavouring straws

PikSip Juice flavour Straws are an exciting, new category of product that turns plain

water into a tasty juice - simply by drinking through a straw!

As cold water passes through the straw, special beads dissolve to deliver a refreshing

cold juice experience unlike any other on the market.


6/69

6

Available in four Juice flavours Orange, Sweet lime, Grapes, Pineapple. PikSip Juice

Straws provide an instant, cold Juice hit without the hassle, without the preparation,

without the mess without the kitchen or caf!

PikSip Juice Straws will change the way people think of Flavoured Juices. Take a

moment to refresh the spirit within - simply slip a PikSip Straw into cold water andappreciate this fresh juicy innovation!

How do I use PikSip?

PikSip is used like any other straw, except it flavours milk. Your PikSip milk/Juice

flavouring straw is fine the way it is. You don't have to cut, chew, burn or do anything

else too tricky to it.

All you have to do is:

Pik,Rip, Dip, Sip & Say Ahh!

Pik the Straw

Rip off the wrapper

Dip your PikSip milk/juice flavouring straw into a glass of cold milk/Water (it

doesn't make a difference which end you dip in).

Sip. It's the most important step to remember. Sip away to your heart's content and

let PikSip wake up milk/water before your very eyes.

Say Ahh No you're not at the Doctor and it's not one of those ahh's with your

tongue out anyway. Our ahh is a sigh of joy. As in: Ahh, I never knew milk could be so good! Ahh, it's like there's a party in my mouth and everyone's invited! Ahh, that's the way ahh-ha, ahh-ha, I like it!


7/69

7

33.. PPRROOCCEESSSS FFLLOOWW

1. Ordering Of Straws:

The company shall order straws from :

Bendy Straws Pvt. Ltd. 101, A-12, Pritesh Complex, Dapoda Mankoli Road, Village -

Bhiwandi, Thane - 421403, Maharashtra, India.

Specification of Straws:

Item Thick Shake StrawsLength 20cmsInner Diameter 7.6mm5Outer Diameter 8mmCaliper 200 micronPacking/Bag 100pcsMaster Packing 200pkt (20000pcs)Colour White with red strips

The company shall order straws in the following manner:

Straws ordered at one point of time: 200000pcs

Used in a day: approx 33000 pcs

So usage time: 6 days

Distance of factory from the manufacturers place: 60 km

So time taken for the raw materials to reach the factory will be 3 hours

So, for confirming the order and to see that the order reaches before time the company

shall place an order one or two days before stating the delivery date to the

manufacturer.

Storing of Straws:

The company shall store the straws in the warehouse of 2500 sq ft.

2. Ordering Flavours:

L.LILADHAR & Co. Plot No. C-111, TTC Indl. Area MIDC, Pawane, Navi Mumbai -

400 705 (INDIA)

The flavours shall contain the necessary nutrients.


8/69

8

3. Machine Process Flow

Beads manufacturing

Inserting beads in straw

Filter inserting

Beeds which are manufactured and inserted in the straws


9/69

9

Ingredients of the final product

INGREDIENTS Avg QTY per

straw (3.5g) *

Avg QTY per 100g Ave QTY per

straw

With 250 ml

reduced fat milk

(1.4% fat)Energy (Kj/kcal)

Protein(g)

Fat-total (g)

Saturated(g)

Carbohydrate

Total(g)

Sugars(g)

Dietary Fibre(g)

Sodium (mg)

51.1/12.2

0.0

0.0

0.0

3.1

1.8

0.0

0.2

1460/348

0.1

0.0

0.0

89.7

50.7

0.0

5.0

571/136

9.8

3.5

2.3

16.4

15.1

0.0

120

Distribution

After getting finished product in companys factory warehouse, situated at Aasan

Gaon near Mumbai, Company will initially start 4 regions Mumbai, Delhi,

Ahmadabad and Pune. All the warehouses and distribution will be outsourced will

the best logistics and supply chain services providers. Company will have regional

offices in these respective cities with warehousing, distribution and logistics will beoutsourced to 3rd party logistics company. For further distribution of product

company will appoint a distributor for each city, who will further work with the

companys staff and create market for the product and take care of wholesalers and

retailers requirement.

After getting appointed a distributor in a city, he will placed the order of the product

with the company through city manager, after getting approval from concerned

departments, Head office will give instructions to 3rd party logistics company to

supply and deliver the mentioned quantity of goods to certain address of wholesalers

and retailers mentioned by the distributor.


10/69

10

Distribution Diagram

Supplier

Company's

factory and

warehouse

Distributor for

Mumbai

Distributor for

Delhi

Distributor for

Ahemdabad

Distributor for

Pune

Distributors

contacts resp.

Regional officesfor placing

Wholesaler Wholesaler Wholesaler Wholesaler

Retailer Retailer Retailer Retailer

Consumer Consumer Consumer Consumer


11/69

11

44.. HHRR PPOOLLIICCIIEESS

People are the assets that companies absolutely and categorically cant do without.

Human Resource is an essential ingredient for any organization, big or small and is a

must for the success of a start up. For any start-up, clear defined policies and

procedures are required to govern the workplace and hence, its advisable to define

HR policies that can make the organization more efficient and prevent common

business problems.

Start-ups are challenged with product development, securing funding, and building

an organization during the most challenging and competitive period in history. It will

be difficult to hire, retain, and compensate the employees while being compliant with

the myriad of business laws and at the same time focus on releases and budgets. Ourcompany needs the basics now, and also need to plan for the future. So, we will

concentrate on the following policies:

Hiring

Understand the primary duties and responsibilities of a position, as well as

requirements and experience. Once the primary duties have been developed, the pre-

employment process is ready to begin.

Once the hiring process is complete conduct an employee orientation for 1 -2 days. Anorientation answers questions commonly asked by newcomers. A policies and

procedures manual will accomplish this task for you. The manual should

communicate expectations between both parties in a simple, easy to read form.

A beginners manual will include:

1. Welcome statement

2. Company history, goals, and/or philosophy

3. Work hours

4. Pay periods

5. Benefits (including holidays, vacation, and worker's compensation)

6. Disciplinary actions

7. Anti harassment policy

8. At will statement (allows either party to terminate the relationship at any time for

any or no reason at all)

9. Acknowledgement form (shows receipt and compliance of policies)


12/69

12

Training and Development

Training & development is necessary so as to: To create constant awareness in the minds of all sections of employees of the mission

of the industry, its objective and goals.

To encourage self-development to achieve organisation goals with a sense of

belonging and commitment to organisation and thereby ensuring development of a

proper work ethos in the Industry and fostering of team spirit.

To make available in adequate number sufficiently trained manpower to meet the

diverse needs of a rapidly growing industry.

The workers would be given 1 week training regarding the functioning of themachines.

Working Hour Policy

According to Sec.54 of Factorise Act, 1948 an adult worker is not required to work

more than 9 hour and Sec.51 prohibits working for more than 48 hours a week.

Overtime is 2 hours/day and not exceeding 12 hours/week and 50 hours in a quarter.

Employee Designation & Work Timings

Workers: 9.00 am to 6.00 pm

Helpers: 10.00 am to 7.00 pm

Supervisors: 9.00 am to 7.00 pm

Management: 9.00 am to 7.00 pm

Duration for lunch break would be 60 minutes for all the employees.

Compensation & Benefits

Compensation is the actual salary paid to an employee. It is important to develop a

structure that promotes fairness, improves morale, and increases productivity. Afterall, the objective is to attract, retain, and motivate qualified employees. These will be

updated at least yearly to stay abreast of any changes.

Employees Salary will be paid by 2nd of every next month. Also, tea will be provided 2

times a day which will be free. The uniform will be provided. The employees will be

provided with the provident fund, gratuity, etc as per the requirements. All the

employees would be given bonus at 10% of the basic salary. If the employees perform

greater than expectation then they will be given various intrinsic and extrinsic

rewards. Annual picnic will be held which every employee has to attend.


13/69

13

Leave policy

The business is expected to be carried out for 290 working days in a calendar year after

considering the bank holidays and Sundays. Leaves that would be granted to the

employees would be categorised as:

Sick leave

Emergency leave

Sr. No. List of Holidays1. New Year Day2. Makar Sankranti (Kite Festival Holiday), Pongal3. Republic Day4. Mahashivratri5. ID-E-Milad6. Holi (Festival Of Colours)7.

Shri Ram Navami

8. Mahavir Jayanti9. Good Friday Holiday10. Buddha Purnima11. Independence Day12. Rakhi (Raksha Bandhan)13. Janmashtami14. Id ul Fitr (End of Ramadan)15. Ganesh Chaturthi16. Mahatma Gandhis Birthday (Gandhi Jayanti)17. Dusshehra, Deepavali Festival, Diwali (Also called Festival of Lights)18. Diwali Festival Holiday19. Hindu Calendar New Year20. Id-ul Zuha/Bakrid (Also known as Bakri EID)21. Guru Nanak Jayanti22. Moharram (Islamic New Year)23. Christmas Day

Performance & Salary review policy

In every organisation all employees work to achieve the common aims and objectives

of the organisation. Rut all employees do not have same capacities and qualities. The

individuals' qualities differ from person to person. All are not equally efficient and

able. But all have to work together In order to keep their morale high, it is necessary to

inform them, from time to time, about their own level of performance in the

organisation. This can be done by adopting a fair system of Performance Appraisal


14/69

14

The performance & salary of the employees would be reviewed every year.

Health care benefit

Medical insurance scheme would be provided to the employees after completion of six

month duration with the organisation. Employees would also be covered under

Accident insurance and Life insurance. Health check up would be set-up twice a year

for the employees working in the company.

General work-rules:

Dos:

1. Employees should inform 2 weeks in advance regarding their leaves.

2. Employees should be at the work place, ready to work, at the regular starting time.

3. Employees should wear clothing conforming to standards set by the company.

4. Employees should use the company equipment in an authorized manner.

5. Employees should take proper care of company equipment and tools.

6. Employees should be at their respective workstations and may leave only withpermission from his/her supervisor (except for reasonable personal needs).

Donts:

Strict action would be taken against the employees in case any of the below mentioned

actions are followed by the employees:

7. Wilfully damaging, destroying, or stealing property belonging to fellow employees

or the company.

8. Fighting or engaging in horseplay or disorderly conduct.

9. Refusing or failing to carry out any instructions of a supervisor.

10.Ignoring work duties or loafing during working hours.

11.Coming to work under the influence of alcohol or any drug, or bringing alcoholic

beverages or drugs onto company property.

12.Intentionally giving any false or misleading information to obtain employment or a

leave of absence.

13.Using threatening or abusive language toward a fellow employee.

14.Punching another employees time card or falsifying any record.

15.Smoking contrary to established policy or violating any other fire protection

regulation.

16.Wilfully or habitually violating safety or health regulations.

17.Possessing firearms or weapons of any kind on company property.

18.Going on uninformed leave / extended leave in the year.


15/69

15

Recordkeeping

Recordkeeping consists of employee data, federal regulations, and time frames. The

company will compile only job-related information in the personnel file. Items include:

Resume/Job Application

Job Performance and Evaluations Salary Changes

Disciplinary Actions

Transfers

All other items will be kept in a separate confidential file. The information in this file

would be revealed on a need to know basis. Items include:

Vacation, Leave Requests

Pre-employment Evaluations (Subjective items)

Reference Checks

Medical records (Dr. releases, health insurance information, physicals, injury

reports, w/c claims)

Legal Actions

Payroll Records


16/69

16

55.. LLEEGGAALL RREEQQUUIIRREEMMEENNTTSS

The Following are the legal requirements that needs to be followed for starting a

Private limited company:

Certificate of Incorporation

Certificate of Registration under section 22/22 A of the Bombay Sales Tax Act Certificate of Registration under Section 7(1)/7(2) of Central Sales Tax Act,1996

S.S.I. Registration No. issued by E.M.DIC Thane,No. 112408043 dtd.03.03.2001

N.O.C. of Grampanchayat Asangaon No.

N.O.C. of Maharashtra Pollution Control Board

Permanent Account number

Central Excise Registration

Service Tax Registration

Procedure for registering our private limited company:

1. An application for approval of name is to be filed with the Registrar of Companies

in Form No. 1A.

2. Within seven to ten days, the Registrar of Companies sends intimation to the

applicant about the availability of the proposed name of the Company. Once, the name

is approved, it is valid for a period of six months.

3. Our company will then prepare an application for Registration. The following are

the documents to be submitted at the time of Registration:

a. Three copies of draft Memorandum & Articles of Association out of which onecopy should be duly stamped with the necessary stamp duty.

b. The necessary Filing Fees. The same may be paid by a Demand Draft in the name

of Registrar of Companies, Maharashtra

c. The original copy of the name approval letter.

d. Form No. 1 duly typed on a stamp paper and duly signed.

e. Form No. 18 duly typed and signed.

f. Form No.32 duly filled in and signed (in duplicate).

4. On submission of the said documents, a receipt is issued by the Registrar of

Companies, Maharashtra on which a date is specified.5. On the appointed date, the prospective director or his authorised representative will

visit the office of the Registrar of Companies, Maharashtra and make the necessary

changes in the various documents as suggested by the Registrar of Companies. On

completion of the said changes, the said documents may be submitted to the Registrar

of Companies.

6. The Registrar verifies the changes made and checks whether all the formalities have

been completed.

7. The Registrar of Companies issues a Certificate of Incorporation in the name


17/69

17

of the Company.

Information to be submitted with the Application

The following information shall be submitted along with the consent application form

for the speedy processing.

For Consent to establish:

Site plan/index

Topographical Map

Detailed layout plant of different processes and point sources of effluent

discharge/emissions and position of stack and documents including D.G. set

capacity in KVA.

Process flow sheet.

Details of Water Pollution Control/Air Pollution Control devices proposed to be

provided.

Ambient Air Quality Report (if available)

SSI Certificate/NOC from Directorate of Industries Government of Maharashtra.

Details of chemical reactions with mass balance.

Consent fees in the form of D.D. drawn on favour of MPCB.

Local body NOC.

Under taking on Rs. 20 stamp paper or Chartered Accountant certificate about

proposed Capital Investment ( Land, building, and machineries.

For Consent to Operate/Renewal: Detailed layout plant of different processes and point sources of effluent

discharge/emissions and position of stack and documents including D.G. set

capacity in KVA.

Process flow sheet.

Latest analysis report of effluent, fuel gases, solid waste & hazardous wastes.

Details of Water Pollution Control/Air Pollution Control devices provided.

SSI Certificate/NOC from Directorate of Industries Government of Maharashtra.

Details of chemical reactions with mass balance.

Consent fees in the form of D.D. drawn on favour of MPCB.


18/69

18

Health Certificate

Why FDA license?

Food is defined as any article solid or liquid, which generally enters in the human

system, is an article of food. However food does not include any drug or water (except

packaged drinking water / mineral water).Further any such article as declared by the

central government as a food shall be considered as food. Since our company is into

manufacturing of flavoured straws which will be consumed by the end consumers, we

need to have a Food Licence. Food and Drug Administration Maharashtra State is the

State prime instrument for consumer protection.

Application for Food License

Our company will make an application in the requisite form along with the necessary

fees. Fee will be paid in cash at Office of the Commissioner, Food and Drug

Administration, Survey No. 341, Bandra- Kurla Complex, Bandra (east), Mumbai -400

051.

Documents Required

Application in Form A

Additional Information Form for getting Food Licence.

Documents regarding possession of premises (Registration of Premises)

NOC of Gram Panchayat ,Municipal Corporation.

Documents regarding constitution of Firm viz memorandum and article of

association etc.


19/69

19

66.. MMEEMMOORRAANNDDUUMM OOFF AASSSSOOCCIIAATTIIOONN

UNDER THE COMPANIES ACT, 1956

(1 OF 1956)

COMPANY LIMITED BY SHARES

MEMORANDUM OF ASSOCIATION

OF

6 STARS PRIVATE LIMITED

I. The name of the Company is 6 STARS PRIVATE LIMITED.II. The Registered Office of the Company will be situated in the State of Maharashtra.

III. The objects for which the Company is established are the following:

MAIN OBJECTS TO BE PURSUED ON INCORPORATION OF THE COMPANY

1. To carry on the business of manufacturers of flavoured straws which can be used

with milk and water

2. The flavoured straw shall contain filters that will ensure that any kind of particle or

substance shall not cause any kind of harm to the public in general

THE OBJECTS INCIDENTAL OR ANCILLARY TO THE ATTAINMENT OF MAIN

OBJECTS

1. To enter into agreements and contracts with Indian or foreign individuals,

companies or other organisations for technical, financial or any other assistance for

carrying out all or any of the objects of the Company.

2. To enter into agreements and contracts with the distributive agents at each location

chosen by the company to facilitate proper sale of straws in bulk to the agents.

3. The agents shall then sell it to the respective retailers on the price quoted by us.

4. To advertise and adopt means of making known the business activities of the

Company or the products produced by the company in any way as may be

expedient including the posting of bills in relation thereto and the issue of circulars,

books, pamphlets and price-lists and the conducting of competitions, exhibitions

andgiving of prizes, rewards and donations.


20/69

20

5. To expend money on research, experimentation, development, testing, improving

or seeking to improve existing products, patents, rights, etc., in connection with any

of its activities in pursuance of the aforesaid objects and to expend money to

invent,develop, or seek, any new products allied to and in the course of pursuing

the objects as detailed in this clause.

6. To work, develop, license, sell or otherwise deal with any inventions in which the

company wants to.

7. To work, develop, license, sell or otherwise deal with any inventions in which the

Company is interested whether as Owner, Licensee or otherwise, and to make, levy,

or hire any machinery required for making or desirable to be used as machines

included in such inventions.

8. To enter into partnership or into any arrangement for sharing profits

9. To enter into partnership or into any arrangement for sharing profits, union of

interest, co-operation, joint venture, reciprocal concession or otherwise with any

person, firm, or company carrying on or engaged in or about to carry on or engage

in any business or transaction which this Company is authorised to carry on or

engage in or any business or undertaking or transaction which may seem capable of

being carried on or conducted so as directly or indirectly to benefit the Company;

and to lend money, to guarantee the contracts of or otherwise assist any person,firm or Company and to take or otherwise acquire and hold shares or securities of

any such person, firm or company and to sell, hold, re-issue with or without

guarantees or otherwise deal with such shares and securities.

10.To enter into any arrangement with any Government or State Authority, Municipal,

Local or otherwise that may seem conducive to the Companys objects or any of

them and to obtain from any such Government or State Authority, any rights,

privileges and concessions which may seem conducive to the Companys objects or

any of them.

11.To purchase or otherwise acquire and undertake the whole or any part of the

business property, rights and liabilities of any person, firm or company carrying on

any business which this Company is authorised to carry on and to purchase,

acquire, apply for, hold, sell and deal in shares, stock, debentures or debenture

stock of any such person, firm or company and to conduct, make or carry into effect

any arrangement in regard to the winding up of the business of any such person,

firm or company.

12.To construct, acquire, establish, provide, maintain and administer factories, estates,


21/69

21

buildings, water reservoirs, sheds, channels, pumping installations, generating

installations, pipelines, garages, storages and accommodation of all descriptions in

connection with the business of the Company.

13.To apply for tender, purchase or otherwise acquire any contracts and concessions

for or in relation to the construction, erection, equipment, improvement,

managements, administration or control of works and conveniences and to

undertake, execute, carry out, dispose of or otherwise turn to account the same.

14.To buy, lease or otherwise acquire lands, buildings and other immovable properties

and to sell, mortgage or hypothecate or otherwise dispose of all or any of the

properties and assets of the Company on such terms and conditions as the

Company may think fit.

15. To amalgamate with any Company or Companies having objects altogether or inpart similar to those of this Company.

16.To pay all costs, charges and expenses of and incidental to the formation,

promotion, registration and establishment of the Company and issue of its capital

including any underwriting or other commission, brokers fee and charges in

connection therewith including costs, charges of negotiations and contracts and

arrangements made prior to and in anticipation of the formation and incorporation

of the Company.

17.To draw, make, issue, accept and to endorse, discount and negotiate promissory

notes, hundies, bills of exchange, bills of lading, delivery orders, warrants,

warehouse keepers certificates and other negotiable or commercial or mercantile

instruments connected with the business of the Company.

18.To open accounts with any individual, firm or company or with any bank or banks

and to pay into and to withdraw moneys from such account or accounts.

19.To make advances upon or for the purchase of materials, goods, machinery, stores

and other articles required for the purpose of the Company.

(a) To receive money on deposit at interest or otherwise subject to the Rules, if

any prescribed by the Reserve Bank of India.

20.To borrow or raise money with or without security or to receive money on deposit

at interest or otherwise, in such a manner as the Company may think fit and in

particular


22/69

22

21.To distribute any of the properties of the company amongst the members in specie

or kind upon the winding up of the Company.

22.To fabricate, purchase, construct, take on lease/rent, erect, maintain, machineries,

plants, equipments, structurals, carriages related to the business activities of the

company and to take on lease, purchase or otherwise acquire lands and other places

including offshore areas which seem capable IV The liability of the members in the

Company is limited.

We, the several persons whose names and addresses have been subscribed hereunder

are desirous of being formed into a Company in pursuance of the Memorandum of

Association and we respectively agree to take the number of shares in the capital of the

Company set opposite our respective names.


23/69

23

77.. AARRTTIICCLLEESS OOFF AASSSSOOCCIIAATTIIOONN

UNDER THE COMPANIES ACT, 1956

[1 OF 1956]

COMPANY LIMITED BY SHARES

ARTICLES OF ASSOCIATION OF

6 STARS PRIVATE LIMITED

The regulations contained in Table A of Schedule 1 to the Companies Act is applicable

to our company as ours is a private company.

NUMBER OF DIRECTORS

Until otherwise determined by the Company in the AGM and subject to the provisions

of Section 252 of the Companies Act, the number of directors shall not be more than

twelve and not less than two.

The Directors of the company are:-

1. Miss. Sneha Sasane

2. Miss. Diksha G.

3. Miss. Ishita Doshi

The Additional Directors of the company are:-

1. Miss. Hetal Patel (Chief Officer Strategies and Operations)

2. Ms. Bhagashree C (Chief Officer

Finance)

3. Ms. Sadhana Sharma (Chief Officer Marketing and

Sales )

SHARE CAPITAL

The Authorized Share Capital of the company is Rs. 25000000 divided into 25,00,000

shares of Rs. 10 each. The company may from time to time reduce/increase its share

capital in any way by a special resolution subject to confirmation by the court and

provisions of Sections 100 to 104 of the companies Act.

Subject to the provisions of the Companies Act and of the companys Articles of

Association the shares shall be under the control of the Directors. These directors have

the right to allot, issue or otherwise dispose off to persons whom the directors

consider fit, subject to the provisions of Sections 78 & 79 of the Companies Act. This


24/69

24

can be done at a premium, at par or at discount as per the discretion of the directors.

DIRECTORS REMUNERATION

The Directors are entitled to receive remuneration including fee for attending any

meeting of the Board as the Board may decide from time to time.

VOTING RIGHT

Subject to any rights or restrictions for the time being attached to any calls of shares (a)On a show of hands every member present in person or by proxy shall have one vote

and (b) On a poll, voting rights of members shall be laid down as per Section 87 of the

Companies Act, 1956.

Any member of the company entitled to attend and vote at a meeting of the company

shall be entitled to appoint another person whether a member or nor as his proxy to

attend and vote instead of himself. A proxy so appointed shall also have the right to

speak at such a meeting.

NOMINEE DIRECTOR

If it is provided by any trust deed securing or otherwise in connection with any issue

of debenture of the Company that any person or persons shall have power to

nominate a Director of the Company then in case of any and every such issue of

debentures the person or persons having such power may exercise such power from

time to time andappoint a Director accordingly. Such Directors may be removed from

office at any time by the person or persons in whom for the time being is vested the

power under which he was appointed and another Director may be appointed.

SPECIAL DIRECTOR

The Company shall subject to the provisions of the Act, be entitled to agree with any

person, firm, body corporate, corporation, government or authority that he or it shall

have the rightto appoint his or its nominee on the Board of Directors of the Company

upon such terms and conditions as the directors may deem fit. Such nominee and their

successors if appointed under this Article shall be called Special Directors. Special

Directors shall be entitled to hold office until requested to retire by the authority,

which nominated him/them and he/they will not be bound to retire by rotation. Asand whenever a Special Director vacates office, whether upon request as aforesaid or

by death, resignation or others the government authority, person, firm, body corporate

or corporation who appointed such special.


25/69

25

Subject to the provisions of the Act and of these Articles the Board shall have power to

appoint from time to time any of its member as Managing Directors or Managing

Director and/or whole time Director, and/or Special Director like Technical Director,

Financial Director of the Company for a fixed term not exceeding five years at a time

and upon such terms and conditions as the Board thinks fit, and the Board may by

resolution v.est in such Managing Director or Managing Director/Whole time

Director(s) Technical Director(s), Financial Director(s) and Speci.al Director(s; such of

the powers hereby vested in the Board generally as it thinks fit, and such powers may

be made exercisable for such as it may determine. The remuneration of such Directors

may be way of monthly remuneration and/orfee for each meeting and/or participation

in profits or by any or all of those modes, or anyother mode not expressly prohibited

by the Act.

The Directors may, from time to time, entrust to and confer upon a Managing or

Whole time Director any of the powers exercisable by the Director as may think fit,

and may confer upon such powers for time, and to be exercised for such object andpurposes and upon such terms and conditions and with such restrictions as they may

think expedient and may from time to time, revoke, withdrawal, alter or vary all or

any of such powers. The Directors may whenever they appoint more than one

Managing Director, designate one or more of them as '''Joint Managing Director" or

Deputy Managing Directors" as the case may be. The appointment and payment of

remuneration to the above Director shall be subject to approval of General Meeting

and of tile Central Government if the provisions of the act so require.

ALTERNATE DIRECTORSThe Board may appoint an alternate Director who is recommended for such

appointment by a Director (thereafter called the "Original Director) to act for him

during his absence for a period of not less than three months from state. Every

alternate Director shall (subject to his giving to the Company and I address in state or

elsewhere of such alternate Director), be entitled to notice of meeting of Director and

to attend and vote as a Director and be counted for the purpose of a quorum and

generally at such meetings tohave and exercise all the powers, duties and authorities

of the Original Director. The Board may at any time upon request in writing of the

Original Directors revoke the appointment of an Alternate Director and appoint

another person recommended by the Original Director in his place. The Alternate

Director appointed under this Article shall vacate office as and when the Original

Director returns to state, if the terms of office of the Original Director is determined

before he so return to India, any provision; in the Act or in these Articles for the

automatic re-appointment of rehiring Director in default of another appointment shall

apply to the original Director and not the Alternate Director.


26/69

26

ADDITIONAL DIRECTOR

The Board of Directors shall have power at any time, and from time to time, to appoint

any other person to be a Director either as an addition to the board or to fill casualvacancy but so that the total number of Directors shall not at any time exceed the

maximum as fixed hereinafter. Any person so appointed as an addition to the Board

shall hold- office only up to the date of the next Annual General Meeting. Any person

appointed to fill a casual vacancyas aforesaid shall hold office only up to which the

Director in whose place he is appointed could have held office if it had not been

vacated as aforesaid.

POWERS OF DIRECTORS

In furtherance and not in limitation of, and without prejudice to the general powersconferred on the directors by Table "A", in the First Schedule to the Companies Act,

1956 the Board of Directors shall have the following powers.

1. To open accounts with the Company's bankers and such other bank as they deem

expedient and to operate or authorize operation thereof.

2. To raise or borrow any sum of money for and on behalf of the Company from the

members or other persons, companies or banks subject to the provi-sions of the Act in

this behalf on interest as may be approved by the Directors.

3. To appoint any person or persons or bodies incorporated or otherwise to accept' and

hold in trust for the Company any property belonging to the Company, or in which

the Company is interested or for any other purpose, and. to execute and do all such

deeds and things as they may deem requisite in regard to such trust including the

provision of remuneration to such trustee or trustees.

4. To appoint and at their discretion remove or suspend such managers, secretaries,

officers, clerks, agents and servants for permanent, temporary or special services as

theymay from time to time think fit, and to determine their powers and duties and to

fix their salaries and emoluments and require security in such instances and to such

amount as they think fit and to establish or manage or support or aid in the

establishment of a provident or any other funds for their benefit or any, other purpose.

5. To secure the payment of money in such manner and upon such terms and

conditions in all respects as, they think fit and in particular by the issue of debentures

or bonds of the Company or by mortgage or charge of all or any of the assets of the

Company and of its uncalled capital for the time being.

6. To issue any debenture, bonds or other securities at a discount, premium or

otherwise and with special privileges as to redemption, surrender, drawing, allotment

of shares, attending and voting at general meetings of the Company or otherwise.

7. To subscribe or contribute or otherwise to assist or to guarantee money to charitable,


27/69

27

benevolent, religious, scientific, national or other institutions or objects which shall

have any moral or other claims to support of the Company by reason of locality of

operation or of public and generally utility or otherwise.

8. And generally to do, sanction and authorize all such matters and things as may be

necessary or expedient to be done, authorized or sanctioned in or about the general

business or affairs of the Company or in or about the execution of all or any of the

powers conferred on them.

BORROWING POWERS

The Board of Directors may from time to time at their discretion exercise all the

powers of the Company to borrow money and to mortgage or charge is undertaking,

property and uncalled capital or any part thereof and to issue debentures, debenture-

stocks, and other securities whether out-right or as security for any debts, liability or

obligation of the Company. Any debentures, debenture-stock: and other securities

may be issued at a discount, premium or otherwise and may be issued on condition

that the same shall be convertible into shares of any denomination and with' anyprivileges and conditions as to redemption, surrender, drawing, allotment of/shares,

attending (but not voting) at generally meetings, appointment of Directors and

otherwise Debentures with the right to conversion into or allotment of shares be

issued only with the consent of the Company in general Meeting.

SEAL

The Board shall provide a common Seal for the purpose of the Company and shall

have power from time to time to destroy the same and substitute a new Seal in lieu

thereof, and the Board shall provide for the safe custody of the Seal, for the time being

and .the seal shall never be affixed to any instrument except by or under the authority

or resolution of the Board or of a Committee of the Board authorized by it in that

behalf and in the presence of atleast one Director, who shall sign every instrument to

which the Seal of the Company is so affixed in this presence.

INDEMNITY

Managing Directors, Directors, Managers, Auditors Secretary and other officers or

servants for the time being acting in relation to any of the affairs of the Company, and

every one of them and everyone of their heir, executors and administrators shall be

indemnified and secured harmless out of the assets and profits of the Company from

and against all actions, costs, charges, losses, damages, and expenses which they or

any of them or any act of their executors or administrators shall or any incur or sustain

by reason of any act done, concerned in or omitted the execution of their duty or

suspend duty in their respective offices or trusts, except such (if any) as they shall

incur or sustain through or by their own willful neglect or defaults the others or others

of them or for any joining in any receipt for the sake of conformity for nay bankers or


28/69

28

other persons with whom any moneys or effects belonging to the Company shall or

any belonging or deposited for safe custody or for the insufficiency or deficiency of any

Security upon which the money or effect belonging to the Company shall be invested or

for any other loss, misfortune or damage wh1ch may happen in the execution of their

respective offices or trusts or in relation thereto except the same shall happen by or

through their own willful neglect or default respectively.

SECRECY

Every Director Manager, Auditor, Treasurer, Trustee, Member of Committee, Officers,

Servant, Agent, Accountant or other persons employed in the business of the

Company shall if so required by the Directors before entering upon his duties sign a

declaration pledging himself to observe a strict secrecy respecting all transactions and affairs

of the Company, with the customers and the state of accounts with individuals and in

matters relating thereto and shall by such declaration pledge himself not to reveal any of

the matters which may come to his knowledge in the discharge of his duties except when

required to do so by, the Board or by law or by the person to whom such matters relate,except so far as may be necessaryin order to comply with

any provisions of these presents contained.


29/69

29

88.. TTHHEE HHEEAALLTTHH FFOOOODD DDRRIINNKK IINNDDUUSSTTRRYY

With people turning more health conscious, the Health Food drink segment has

become one of the fastest growing and most exciting businesses at the moment. For some

time now, manufacturers have experimented with some of the formulation and taste issues,

offering the consumers better tasting, more healthful alternatives. Evolving fromdrinks containing a hint of herbs or vitamins, beverages have become an important

delivery vehicle for efficacious amounts of nutritional ingredients. Beverages are

unusual products in that everyone expects to try new varieties, even from established

brands.

While all segments of the Food drink market are evolving, the growth seems to be

directed more towards healthy, light and low-calorie drinks, in particular organic and fruit

juice varieties.

The Rs 500 crore Health Food Drink market in the country is composed of fruit drinks, nectar

and juices. While the fruit drink segment is estimated at Rs 250-300 crore (branded and

packaged), the juice market is valued at Rs 150 crore and the nectar is a small category of

about Rs 35-50 crore. And the popular brands vying for a share in the sector are Parle's

Frooti, Godrej's Jumpin, Coca Cola's Maaza, Pepsi's Tropicana, and Dabur's Real, Nastle's

Milo, Soy milk from ProSoya and branded fruit juices from Surya Foods among others.

Fruit juice/drinksThe organised fruit beverage market which includes nectars, drinks and juices is among

the fastest growing segments in the beverages category and was valued at US$0.3 billion

in 200607, growing at annual rate of 25 per cent. While the fruit drink sector dominates the

market with a 77 per cent market share, the fruit juice and nectar sector accounts for 23 per

cent of the market.

The advent of liquid packaging cartons (Tetra Pak) has helped in increasing the sales of

fruit juices in India. The entry of large brands into the fruit juice market in Tetra Pak Packages

has had a good impact on the growth of this sector. Today, most of theleading brands have introduced their products in tetra packages.

The fruit juice market in India is fragmented, with a number of small regional players

and a few large players in the organised sector. However, more than 90 per cent of the sales

are through the unorganised route such as juice centres, street corner shops, kiranas,

convenience stores, etc. Therefore juice manufactures generally tap the unorganised

sector more. In the fruit drinks, Parles Frooti leads the market, followed closely by Cokes

Maaza, Pepsis Slice and Godrejs Jumpin. Daburs Real and Pepsis Tropicana are the


30/69

30

leaders in the fruit juice segment, though Dabur enjoys an edge over Pepsis Tropicana in

terms of market share.

Major players and their market share

Sector Brand Market ShareFruit Juices Real 60Tropicana 33

Others 7Total 100Fruit Drinks Frooti 38Mazaa 35

Others 27Source: MCG Compilation

Major players and flavours

Sector Company FlavoursFruit drinks

Parle Agro Mango, Apple, Lime, Guava, Pineapple, Green Mango and BlendedGodrej Foods Mango, Apple, Lime, Guava, Pineapple and BlendedCoco Cola India MangoCoco Cola India Mango

Fruit JuiceDabur Orange, Mango, Pineapple, Guava, Grape, Tomato, LitchiPepsico Holdings Apple, Orange, Grape, Pineapple, Guava, Mixed fruitParle Agro Mango Strawberry, Banana, Peach, ChikuCoca-Cola Orange

Fruit NectarDabur Apple, Mango, Mixed Fruit, Cranberry, OrangeGodrej Foods Litchi, Mango

Malted Health Food drink

The Rs. 14.4 billion malted foods market is composed of two segments - brown and

white. Malted beverages with nutritional attributes control around 70% of the total

market and energy drinks (brown beverages) account for the rest. The malted fooddrink industry is dominated by few players. These include brands such as ' Horlicks,

'Complan' and 'Viva', which are mainly known as white beverages. 'Boost', 'Bournvita',

'Milo' and 'Maltova' on the other hand are classified as brown drink. The consumption

pattern of malted beverages differs according to usage patterns across geographic

zones


31/69

31

Major players in POWDER CATEGORY:

Company Brand Market Share(%)Cadbury Bournvita 11GSK-CH Horlicks,Boost, Viva 70Nestle Milo 5Heniz Complan 13GCMMF Amul Shakti 1

Key trends

The health food drink industry has evolved into a modern industry from a traditional,

small-scale production system. This industry today caters to the diverse needs and

tastes of Indian consumers. Over the last decade there has been a drastic increase in

the demand for Health drink in India and some of the factors which have helped this

increase include rapid change in the lifestyle of Indians particularly urban dwellers,

rise in disposable incomes,increase in the number of working women, growth of

nuclear and double income families,increase in the number of jet setters, explosion of

the information and communication sector,etc. Other factors which have also helped

in the growth of the food processing industry include favourable demography and

economic factors, stable democracy and raw materials supply. Owing to factors such

as increase in literacy rate, rapid growth in urbanisation, rising per capita incomes,

relatively cheap workforce, etc. there are significant opportunities for developing vastunderlying markets in the country. In addition to these factors, the geographical

location of India helps in giving it the competitive advantage of being able to cater to

major consumption centres.

Some of the key trends of the Health food drink sector include:

Expanding product variety;

Improvements in the supply chain;

Improvements in the food retail sector such as emergence of organised food

retailing;

Growing awareness of health and food safety;

Upgrading and modernisation of food processing units;

Enhanced packaging facilities;

Increasing importance of food standards and labelling laws;

Liberalised government policies such as 100 per cent foreign direct investment in

the key food segments, reduction in the excise duty, etc.;

Emergence of niche market opportunities in exotic product categories;

Increasing acceptance of India as a global sourcing partner;


32/69

32

Increase in the demand for processed food has led to the rise in the share of

processed food in international trade. International trade also offers a large

potential to increase value-addition to a food product than unprocessed products.

Some of the emerging trends of the processed food sector are: Greater demand for ready-to-eat and ready-to-cook food.

Increasing preference for western food.

Rise in the presence of multinational companies in the food processing sectors.

Increasing recognition of regional and foreign brands.

Increase in the number of mergers and acquisitions.

Emerging investment opportunities in infrastructure development, technology,

testing and inspection, marketing, packaging, etc.

Change in food consumption patterns. A shift is being witnessed towards the

consumption of higher value products across all income levels. A growing demandfor different food attributes which include health, safety, convenience and the

manner in which the food is grown is being witnessed in the country.

A large potential for imported products mainly among urban consumers. The

factors that have helped in increasing the awareness of imported products in India

include increase in overseas travel, rising income levels, international exposure,

changes in food habits, changes in spending patterns of consumers and the retail

revolution.

Key drivers

UrbanizationRapid growth in industrialisation and robust growth of the IT industry have paved

way to more employment opportunities and marked an increase in the concentration

of people in urban areas. In 2007 the urban population accounted for nearly 30 per cent

of the total population in India. With a large working population the need for

convenience is on the rise and as a result products that simplify urban lifestyles are

high in demand. The consumption pattern of these urban dwellers is also changing by

the day with a clear shift of expenses from basic to luxury products. It is this change inattitude and lifestyle that has boosted the demand for imported food products.

Rising income levelsWith higher disposable incomes the upper-middle income urban elites are an

important customer base for imported foods in India. Increasing incomes and personal

freedom have attracted young customers wanting to move away from traditional

lifestyles. Rising affluence of the middle income group has led to changes in eating

and spending habits.


33/69

33

Exposure to global cultureWith an increase in the number of jet setters, cable television and internet penetration

(60.7 per cent and 5.3 per cent respectively), more Indians are now on the lookout forimported food products. International exposure is creating better brand awareness and

product knowledge resulting in easier penetration of imported products into the

country. People have also become more health conscious and hence prefer branded

packaged food.

Retail revolutionRising consumer spending, greater need for convenience and product variety and

favourable government policies have fuelled the growth of organised retailing in

India, making it a land of retail opportunities. Growing number of Indians now have

the desire and ability to shop in organised retail stores and buy quality products. This

new retailenvironment has resulted in the emergence of a large number of malls and

modern supermarkets offering imported food products greater visibility and shelf

space.

.


34/69

34

99.. PPOORRTTEERRSS FFIIVVEE FFOORRCCEESS MMOODDEELL

Attractiveness of Health Food Drink Industry- Porters Five Forces

Michael Porter has postulated that the intensity of competition in an industry is

determined by its underlying economic structure1. And the industry structure is

shaped by five basic competitive forces: the threat of new entrances into the industry,

the bargaining power of suppliers to the industry, the threat of substitute products orservices, the bargaining power of customers or buyers, and the Rivalry among Existing

Firms (Wheelen and Hunger, 2006). In the below diagram are shown these competitive

forces.

I) Threat of New Entrants

New entrants to an industry typically bring to it new capacity, a desire to gain market

share, and substantial resources. They are threats to an established corporation. The

threat of entry depends on the presence of entry barriers and the reaction that can be

expected from existing competitors. An entry barrier is an obstruction that makes it

difficult for a company to enter an industry.

Now with respect to Health drink market there are entry barriers

If the form proprietary product differences unless there is significant marked

difference in the type of product offered to the consumer the new entrant cannot

make his presence felt.


35/69

35

Appropriate raw material access and cost advantage stands a another

distinguished barrier for a new entrant

Government regulation for example, the production, distribution and sale are

subject to numerous statutes and regulations of the specific states. All companies

are subject to numerous environmental laws and regulations. Extensive distribution networks and logistics are key to achieving a high level of

penetration in both the urban and rural markets. Gaining access to such widespread

distribution channels is not easy.

The Health Drink industry is thus, characterised by moderate entry barriers and low

exit barriers.

II) Rivalry among existing firms

In most industries, corporations are mutually dependent. A competitive move by one

firm can be expected to have a noticeable effect on its competitors and thus may cause

retaliation or counter efforts.

There is rivalry between the existing firms due to universe and to number of

competitors. But there is rivalrybetween the firms for case of products with similar

characteristics like Bournvita and Complan and also in Fruit juice category with

Rasna and Tropicana, and by fact that the exit barriers are high.

The rivals also introduce different product variants now and then to renew interest

in their brands while simultaneously keeping all the old favourites available. Since

switching costs are low (if the consumer doesnt find her favourite drink in the

store, its likely shell pick up a rivals offering) companies have to be forever on the

lookout to devise new ways to capturing and retaining customers.

Current market players can no longer afford to take a blinkered view of the market

New foreign players are always in the view of entering this lucrative market eg.

Tang, Rani,etc

III) Threat of Substitute Products or Services

Substitute products are those products that appear to be different but can satisfy the

same need as another product. Substitutes limit the potential returns of an industry by

placing a ceiling on the prices firms in the industry can profitably charge.

To the extent that switching costs are low, substitutes may have a strong effect on an

industry.


36/69

36

There is threat of substitute products or services, by fact in this industry (Non

alcoholic beverage) are present products in the market that is growing for maturity

for case of products like Coca-cola, Fanta, for example.

IV) Bargaining Power of BuyersBuyers affect an industry through their ability to force down prices, bargain for higher

quality or more services, and play competitors against each other.

For a Health Drink industry like chocolate, we take retailers to be the main buyers.

It is the retailers who come in contact with the end-users to sell the product made

by a Health Food Drink industry. The retailers are further segmented into small

independent retailers, supermarkets, hypermarkets, malls and the like. Analysing

the buyers based on their negotiating power reveals that their bargaining power is

not very high, which makes the scenario attractive for the Health Food Drink

industry?

V) Bargaining Power of Suppliers

Suppliers can affect and industry through their ability to raise prices or reduce the

quality of purchased goods and services.

The bargaining power of suppliers depends on suppliers economic bargaining

power relative to companies competing in the industry. Suppliers are powerful

when company profitability is reduced by suppliers actions. Suppliers can exert

their power by raising prices or by restricting the quantity and/or quality of goods

available for sale.

Here for the Health Food drink Industry it is low, because there are many suppliers in

this industry.


37/69

37

1100.. SSWWOOTT AANNAALLYYSSIISS

Strength

Real consumer need

Large market and growing

ResponsivenessQuality/hygiene

Range - flavour/pack

Low costs

Non alcoholic

Weaknesses

Increasingly seen as a commodity

Negative claims

Short termism

Traditional preservation

Difficulty of establishing technical

advantage

Narrow range of materials

Opportunity

Establish facts and use quality PR and Newpreservation methods

New packaging materials and functional designs

Automation/IT and other manufacturing ideasUltimate traceability & Smart packaging

Pack seal ability &'Ethnic drinks'

Replace alcoholic drinks& Further replace tea andcoffee

Technical ease of introduction of new varieties

Threats

Drinks seen as unhealthy (e.g.sugar andsweeteners)

Vulnerability of brands

Environmentalism e.g. packaging levy

Pressure groups/uninformed media

Microbiological issues

Reliance on water supply

Tampering

Demographics and Increasing distribution costs

Proposed restrictive legislation

Influence of suppliers on cost


38/69

38

1111.. MMAARRKKEETT AANNAALLYYSSIISS SSUUMMMMAARRYY

Market Segmentation

The Potential customer groups for PIKSIP are:

Kids (Age 3-14): Marketing Research and Statistics suggests that there areapproximately 20 Lakhs Kids in the Mumbai, Pune, Ahmedabad and Delhi. They

constitute around 5 % of the total population of the cities mentioned above. Kids are

considered for both Milk and Water flavoured straws of PIKSIP.

15-30 Age Group: This group generally includes Youths and Young Adults. BothYouths and Young Adults are in our target market of Water flavoured straws of

PIKSIP.

Others: This group basically consists of age group of more than 30 who occasionallyconsumes water flavoured drinks.

Table: Market Analysis

Market

Analysis2010 2011 2012 2013 2014

Potential Growth CAGRCustomersKids 15% 2,000,000 2,300,000 2,645,000 3,041,750 3,498,013 15.00%14- 30 yr 10% 3,000,000 3,300,000 3,630,000 3,993,000 4,392,300 10.00%Age GroupOthers 5% 2,000,000 2,100,000 2,205,000 2,315,250 2,431,013 5.00%Total 10.19% 7,000,000 7,700,000 8,480,000 9,350,000 10,321,326 10.19%


39/69

39

TargetMarket Analysis

Children (Age 3 to 14) Youth (Age 15 to 30) Others (Above 30)

29% 28%

43%

Target Market Segment Strategy

Company primarily focuses on its target market, KIDS, Youths and Young

Adults through direct selling via its various relationship. In addition, a significant

amount of investment will be made in advertising to promote product awareness.

Direct selling is far more effective in closing sales as well as in terms of sales and

marketing costs.

Company uses the tool of product demonstrations and tasting at the various schools,

stores and malls to attract sales. Here Product demonstrations and tasting are a critical

step in the sales process as well in knowing the demand of the customers. This is the

opportunity to prove the capabilities and features of our products, educate the

potential consumers and establish a relationship.

Marketing MixProduct

The PIKSIP is the good energy straw. The PIKSIP can add flavour, energy, vitamins,

nutrition - and even pharmaceuticals - to liquid sipped through it. PIKSIP is not just a

new product it is the basis of a whole new category of products. It will change the

way people consume beverages globally, and have a positive impact on the lives of

millions of people around the world.


40/69

40

Let us have a look at ingredients and benefits of PIKSIP:

The PIKSIP is simple, yet ingenious. It has 3 parts:

1. A recyclable, transparent straw

2. Unique filters, at each end of the straw

3. Hundreds of extraordinary and adaptable Uni Beads inside each straw that deliver

flavor and more to liquids sipped through the straw

The unique PIKSIP straw contains tiny flavored beads that dissolve as you suck the

milk through the straw. Simply dip, sip and enjoy; no mess.

We are planning to launch PIKSIP in milk as well as water flavor. Different varieties of

PIKSIP include:

VVaarriieettiieess

Milk Water

Chocolate

Strawberry

Butterscotch

Kesar Pista

Rose

Orange

Pineapple

Mango

Kala-Khatta

Lime


41/69

41

PIKSIP will be available in 1 size that will flavour approximately 250ml of milk and

water. It is free of artificial colours and preservatives.

Price

Pricing strategy has been consistent with the differentiation objective, to provide

added value for a reasonable rate as opposed to discounting and devaluing our

products and services.

We are offering PIKSIP straws in 3 different packages which are in pack of 3,6 and 10

respectively.

Pricing for the PIKSIP are as following :.

Packaging PricePack of 3 15Pack of 6 25Pack of 10 40

Promotion

Primary focus will remain on mass communication via hoardings in Schools and

Colleges . Direct mail campaigns to existing and prospective clients will increase as acost effective means of targeted campaigning.

Company will spend almost 30 Lacs Rs. in its first year of operations to build a brand

and a loyal customer base. Marketing efforts will be focused on the local market, and

the campaign will run the entirety of 2010, increasing roughly 10% per year to match

increased sales revenue. The marketing budget will consistently equal almost 20% of

sales.

A Few Specific Marketing Efforts:

Print Materials

Local Newspapers Hoardings

Demonstrations at Stores and Malls

Advertising

Company does not have a large advertising budget and will not be advertising in the

TV. Instead, Company will focus on more highly-targeted campaigns to reach students

and parents where they are most: school.


42/69

42

Company will print flyers and brochures to be left at all area schools and will also

provide them to school Education instructors so that the brochures can be passed on to

students.

In addition, Company will schedule demonstrations at area schools in

cooperation with teachers to expose students to PIKSIP that they might not have seen

before.

Additional brand awareness and advertising will come in the form of banners at

Company's sporting events. This will ensure that any parents or students watching the

events will know where to go to participate.

Finally, Company will run limited newspaper campaigns during the sign-up periods at

the beginning of each sporting season to attract new participants.

Public Relations

Public relations is an important part of our marketing mix. Even if advertising is

important, the right PR can get us quoted as experts in publications and on websites

frequented by our target market. We want to launch with a retainer relationship and a

detailed plan for press releases and events, press tours and interviews. The underlying

objective of the PR program is to establish our expertise in the media and on the Web.

Place

We are planning to Launch PIKSIP in 4 Cities of the Country. Those 4 cities are

Mumbai, Delhi, Pune and Ahmedabad. Each of this cities have their advantage on

their own. We are planning to have Headquarters of the company in Mumbai, and will be

setting up sales offices in Delhi, Pune and Ahmedabad. According to survey done

by us we found these 4 locations strategically beneficial for us.


43/69

43

1122.. MMAARRKKEETTIINNGG RREESSEEAARRCCHH

After formulating the concept of PIKSIP, the marketing team of 6Stars carried out a

market research in order to confirm whether the entire concept of PIKSIP would

actually be successful. The team visited different schools and malls and met parents

and students who were then asked to fill a questionnaire.

Questionnaire and the responses (in terms of percentage)

Sample Size 200

1. Age:

Age

< 24 25-40 41-55 > 55

25%

3%

16%

56%

2. Gender :

Gender

Male Female

3862%


44/69

44

3. Profession :

Profession

37%

2%

11% 16%

34%

Student

Working Professional

Housewife

Retired

Others

4. Income :

Annual Income

19% 10%

38%

33%< 1 Lac

1 Lac - 3 Lac

3 Lac - 7 Lac

> 7 La


45/69

45

5. Water Flavours :

Water Flavours

2%

23%

15%

12%

33%

15%

Orange

Pineapple

Mango

Kalakhatta

Lemon

Others


46/69

46

8. How frequently do you have water flavoured drink?

Water Drink - Cosumption Frequency

15%

10%

43%

32%

Daily

Weekly

Fortnightly

Monthly

9. How frequently do you have milk flavoured drink?

Milk Drink - Consumption Frequency

10%5%

25%

60%

Daily

Weekly

Fortnightly

Monthly


47/69

47

10. Do you make water/milk flavoured drinks for yourself?

You make yourself a flavored drink?

29%


48/69

48

71%


49/69

49

Yes

No


50/69

50

1133..FFIINNAANNCCIIAALLSS

Balance Sheet (Year I)

YEAR IRS RS

SOURCES OF FUNDSSHARE HOLDERS FUNDAuthorized Share Capital18,00,000 shares of Rs. 10 each 1,80,00,000Issued capitalSneha-3,00,000 shares 30,00,000Ishita-3,00,000 shares 30,00,000Diksha-3,00,000 shares 30,00,000Hetal-3,00,000 shares 30,00,000Bhagashree-3,00,000 shares 30,00,000Sadhana-3,00,000 shares 30,00,000Total Owned Funds 1,80,00,000TOTAL SHARE CAPITAL 1,80,00,000RESERVES AND SURPLUS -General ReserveProfit & Loss A/C 63,56,200TOTAL RESERVES AND SURPLUS

63,56,200

LOAN FUNDSSecured Loan 70,00,000Unsecured loan 10,00,000TOTAL LOAN FUNDS 80,00,000SOURCES OF FUNDS (TOTAL) 3,23,56,200APPLICATION OF FUNDSFIXED ASSETSLand 75,00,000Plant & Machinery 1,00,00,000Less: Depreciation 10,00,000 90,00,000Office Building 90,00,000Less: Depreciation 9,00,000 81,00,000Furniture & Fixtures 10,00,000Less: Depreciation 1,00,000 9,00,000Office Equipments 5,00,000Less: Depreciation 50,000 4,50,000


51/69

51

TOTAL FIXED ASSETS 2,59,50,000INVESTMENTS 0CURRENT ASSETS, LOANS AND ADVANCESInventories 5,30,800Cash in Hand 25,000Cash at Bank 14,44,200Loans & Advances 14,26,600Debtors 11,94,200TOTAL CURRENT ASSETS 46,20,800CURRENT LIABILITIESCreditors 7,59,600Other Current Liabilities -TOTAL CURRENT LIABILITIES 7,59,600WORKING CAPITAL 38,61,200MISCELLANEOUS EXPENDITUREEstablishment Expenses 60,000Less: Written Off 15,000 45,000Deferred Revenue ExpensesAdvertising & Initial Promotion 30,00,000Less: Written Off 5,00,000 25,00,000TOTAL MISCELLANEOUS EXPENDITURE

25,45,000

APPLICATION OF FUNDS (TOTAL) 3,23,56,200


52/69

52

Balance Sheet (Year II)

YEAR IIRS RS

SOURCES OF FUNDSSHARE HOLDERS FUNDAuthorized Share Capital

18,00,000 shares of Rs. 10 each 1,80,00,000Issued capitalSneha-3,00,000 shares 30,00,000Ishita-3,00,000 shares 30,00,000Diksha-3,00,000 shares 30,00,000Hetal-3,00,000 shares 30,00,000Bhagashree-3,00,000 shares 30,00,000Sadhana-3,00,000 shares 30,00,000Total Owned Funds 1,80,00,000TOTAL SHARE CAPITAL 1,80,00,000RESERVES AND SURPLUSGeneral Reserve 7,00,000Profit & Loss A/C 67,56,006TOTAL RESERVES AND SURPLUS 74,56,006LOAN FUNDSSecured Loan 70,00,000Unsecured loan -TOTAL LOAN FUNDS 70,00,000SOURCES OF FUNDS-TOTAL 3,24,56,006APPLICATION OF FUNDSFIXED ASSETSLand 75,00,000Plant & Machinery 90,00,000Less: Depreciation 10,00,000 80,00,000Office Building

81,00,000

Less: Depreciation 9,00,000 72,00,000Furniture & Fixtures 9,00,000Less: Depreciation 1,00,000 8,00,000Office Equipments 4,50,000Less: Depreciation 50,000 4,00,000TOTAL FIXED ASSETS 2,39,00,000INVESTMENTS 30,00,000

CURRENT ASSETS, LOANS AND ADVANCES


53/69

53

Inventories 6,18,880Cash in Hand 27,500Cash at Bank 24,90,000Loans & Advances 4,50,000Debtors 12,25,216TOTAL CURRENT ASSETS 48,11,596CURRENT LIABILITIESCreditors 13,00,590Other Current Liabilities -TOTAL CURRENT LIABILITIES 13,00,590WORKING CAPITAL 35,11,006MISCELLANEOUS EXPENDITUREEstablishment Expenses 45,000Less: Written Off 0 45,000Deferred Revenue ExpensesAdvertising & Initial Promotion 25,00,000Less: Written Off 5,00,000 20,00,000TOTAL MISCELLANEOUS EXPENDITURE 20,45,000APPLICATION OF FUNDS-TOTAL 3,24,56,006


54/69

54

Balance Sheet (Year III)

YEAR IIIRs Rs

SOURCES OF FUNDSSHARE HOLDERS FUNDAuthorized Share Capital18,00,000 shares of Rs. 10 each 1,80,00,000Issued capitalSneha-3,00,000 shares 30,00,000Ishita3,00,000 shares 30,00,000Diksha-3,00,000 shares 30,00,000Hetal-3,00,000 shares 30,00,000Bhagashree-3,00,000 shares 30,00,000Sadhana-3,00,000 shares 30,00,000Total Owned Funds 1,80,00,000TOTAL SHARE CAPITAL 1,80,00,000RESERVES AND SURPLUSGeneral Reserve 15,00,000Profit & Loss A/C 84,49,527TOTAL RESERVES AND SURPLUS 99,49,527LOAN FUNDSSecured Loan 50,00,000Unsecured loan -TOTAL LOAN FUNDS 50,00,000SOURCES OF FUNDS-TOTAL 3,29,49,527APPLICATION OF FUNDSFIXED ASSETSLand 75,00,000Plant & Machinery 80,00,000Less: Depreciation 10,00,000 70,00,000Office Building 72,00,000Less: Depreciation 9,00,000 63,00,000Furniture & Fixtures 8,00,000Less: Depreciation 1,00,000 7,00,000Office Equipments 4,00,000Less: Depreciation 50,000 3,50,000TOTAL FIXED ASSETS 2,18,50,000INVESTMENTS 40,00,000


55/69

55

CURRENT ASSETS, LOANS AND ADVANCESInventories 7,19,768Cash in Hand 20,730Cash at Bank 16,55,422Loans & Advances 27,16,578Debtors 9,21,664TOTAL CURRENT ASSETS 60,34,162CURRENT LIABILITIESCreditors 4,79,635Other Current Liabilities -TOTAL CURRENT LIABILITIES 4,79,635WORKING CAPITAL 55,54,527MISCELLANEOUS EXPENDITUREEstablishment Expenses 45,000Less: Written Off 0 45,000Deferred Revenue ExpensesAdvertising & Initial Promotion 20,00,000Less: Written Off 5,00,000 15,00,000TOTAL MISCELLANEOUS EXPENDITURE 15,45,000APPLICATION OF FUNDS-TOTAL 3,29,49,527


56/69

56

Profit & Loss Statement (Year I)

PARTICULARSYEAR IRS RS

NET SALES 4,43,75,000.00Income from other sources 0.00TOTAL INCOME 4,43,75,000.00COST OF GOODS SOLDOpening Material:Straws 0.00Flavours 0.00Filters 0.00 0.00Purchases:

Straws 51,16,800.00Flavours 1,02,33,600.00Filters 30,70,080.00 1,84,20,480.00Closing Stock:Straws 78,000.00Flavours 1,56,000.00Filters 46,800.00 2,80,800.00Factory expenses:Wages 14,40,000.00Carraige Inwards 3,50,000.00Electricity Bills 7,50,000.00Rates & Taxes 70,000.00Repairs to Machinery 30,000.00Depreciation on Machinery 10,00,000.00Factory Insurance 50,000.00Fuel & Oil 40,000.00Salary of Operations Supervisor

1,44,000.00

Welfare Expenses 1,63,606.00 40,37,606.00Add: Opening stock of finished goods 0.00Less: Closing stock of finished goods 2,50,000.00COST OF GOODS SOLD (TOTAL) 2,19,27,286.00GROSS PROFIT 2,24,47,714.00Less: Operating Expenses1. Office and administration expenses:Staff salary 11,04,000.00


57/69

57

Telephone charges 50,000.00Electricity Bills 1,40,000.00Audit Fees 85,000.00Salaries to Promoters 7,20,000.00Legal Fees 12,000.00Printing & Stationary 40,000.00Depriciation on Office Equipments 1,50,000.00Establishment Expenses Written Off 15,000.00General Expenses 1,20,000.00 24,36,000.002. Selling and distribution expensesAdvertising & Promotion Written Off 5,00,000.00Packaging Material 4,75,000.00Carraige Outwards 4,85,000.00 14,60,000.003. Finance ExpensesInterest on Secured Funds 7,70,000.00Interest on Unsecured Funds 1,30,000.00 9,00,000.00TOTAL OPERATING EXPENSES (1+2+3) 47,96,000.00NET PROFIT BEFORE TAX 1,76,51,714.00LESS: Tax (30%) 52,95,514.20NET PROFIT AFTER TAX 1,23,56,199.80


58/69

58

Profit & Loss Statement (Year II)

PARTICULARSYEAR IIRS RS

NET SALES 5,32,50,000.00Income from other sources 4,50,000.00TOTAL INCOME 5,37,00,000.00COST OF GOODS SOLDOpening Material:Straws 78,000.00Flavours 1,56,000.00Filters 46,800.00 2,80,800.00Purchases:Straws 67,54,176.00Flavours

1,35,08,352.00

Filters 40,52,505.60 2,43,15,033.60Closing Stock:Straws 85,800.00Flavours 1,71,600.00Filters 51,480.00 3,08,880.00Factory expenses:Wages 15,84,000.00Carraige Inwards 3,85,000.00Electricity Bills 8,25,000.00Rates & Taxes 77,000.00Repairs to Machinery 33,000.00Depreciation on Machinery 10,00,000.00Factory Insurance 55,000.00Fuel & Oil 44,000.00Salary of Operations Supervisor 1,58,400.00Welfare Expenses 1,79,966.60 43,41,366.60Add: Opening stock of finished goods 2,50,000.00Less: Closing stock of finished goods 3,10,000.00COST OF GOODS SOLD (TOTAL) 2,85,68,320.20GROSS PROFIT 2,51,31,679.80Less: Operating Expenses1. Office and administration expenses:


59/69

59

Staff salary 12,14,400.00Telephone charges 55,000.00Electricity Bills 1,54,000.00Audit Fees 93,500.00Salaries to Promoters 7,92,000.00Legal Fees 13,200.00Printing & Stationary 44,000.00Depriciation on Office Equipments 1,50,000.00Establishment Expenses Written Off 15,000.00General Expenses 1,32,000.00 26,63,100.002. Selling and distribution expensesAdvertising & Promotion Written Off 5,00,000.00Packaging Material 5,22,500.00Carraige Outwards 5,33,500.00 15,56,000.003. Finance ExpensesInterest on Secured Funds 7,70,000.00Interest on Unsecured Funds 7,70,000.00TOTAL OPERATING EXPENSES (1+2+3) 49,89,100.00NET PROFIT BEFORE TAX 2,01,42,579.80LESS: Tax (30%) 60,42,773.94NET PROFIT AFTER TAX 1,40,99,805.86


60/69

60

Profit & Loss Statement (Year III)

PARTICULARSYEAR IIIRs Rs

NET SALES 6,39,00,000.00Income from other sources 6,00,000.00TOTAL INCOME 6,45,00,000.00COST OF GOODS SOLDOpening Material:Straws 85,800.00Flavours 1,71,600.00Filters 51,480.00 3,08,880.00Purchases:Straws 89,15,512.32Flavours 1,78,31,024.64Filters 53,49,307.39 3,20,95,844.35Closing Stock:Straws 94,380.00Flavours 1,88,760.00Filters 56,628.00 3,39,768.00Factory expenses:Wages 17,42,400.00Carraige Inwards 4,23,500.00Electricity Bills 9,07,500.00Rates & Taxes 84,700.00Repairs to Machinery 36,300.00Depreciation on Machinery 10,00,000.00Factory Insurance 60,500.00Fuel & Oil 48,400.00Salary of Operations Supervisor 1,74,240.00Welfare Expenses 1,97,963.26 46,75,503.26Add: Opening stock of finished goods

3,10,000.00

Less: Closing stock of finished goods 3,80,000.00COST OF GOODS SOLD (TOTAL) 3,66,70,459.61GROSS PROFIT 2,78,29,540.39Less: Operating Expenses


61/69

61

1. Office and administration expenses:Staff salary 13,35,840.00Telephone charges 60,500.00Electricity Bills 1,69,400.00Audit Fees 1,02,850.00Salaries to Promoters 8,71,200.00Legal Fees 14,520.00Printing & Stationary 48,400.00Depriciation on Office Equipments 1,50,000.00Establishment Expenses Written Off 15,000.00General Expenses 1,45,200.00 29,12,910.002. Selling and distribution expensesAdvertising & Promotion Written Off 5,00,000.00Packaging Material 5,74,750.00Carraige Outwards 5,86,850.00 16,61,600.003. Finance ExpensesInterest on Secured Funds 5,50,000.00Interest on Unsecured Funds 5,50,000.00TOTAL OPERATING EXPENSES (1+2+3) 51,24,510.00NET PROFIT BEFORE TAX 2,27,05,030.39LESS: Tax (30%) 68,11,509.12NET PROFIT AFTER TAX 1,58,93,521.27


62/69

62

Cash Flow Statement

PARTICULARS YEAR I YEAR II YEAR IIIInflowBanks 70,00,000 0 0Relatives 10,00,000 0 0Personal Investment 1,80,00,000 0 0Current Cash Sales 4,31,80,800.00 5,20,24,784.00 6,29,78,336.00Previous Credit Sales Paid 0 11,94,200 12,25,216Interest on investment 0 4,50,000.00 6,00,000.00TOTAL INFLOW 6,91,80,800 5,36,68,984 6,48,03,552OutflowLand 75,00,000 0 0Plant & Machinery 1,00,00,000 0 0Furniture & Fixtures 10,00,000 0 0Office Building 90,00,000 0 0Office Equipments 5,00,000 0 0Labor 14,40,000.00 15,84,000.00 17,42,400.00Establishment Expense 60,000 0 0Raw Materials Purchased 1,67,47,480.00 2,43,28,443.60 3,19,55,977.35Factory Overheads 30,37,606.00 33,41,366.60 36,75,503.26Administration 22,71,000.00 24,98,100.00 27,47,910.00Selling Expenses 4,85,000.00 5,33,500.00 5,86,850.00Packaging Cost 4,75,000.00 5,22,500.00 5,74,750.00Promotional Expenditure 3000000 0.00 0Interest on Loans 9,00,000.00 7,70,000.00 5,50,000.00Duties & Taxes 52,95,514.20 60,42,773.94 68,11,509.12Loan Repayment 0 10,00,000.00 20,00,000.00Paid to Promoter as Share of Profit 60,00,000.00 1,20,00,000.00 1,50,00,000.00Total Outflow 6,77,11,600 5,26,20,684 6,56,44,900Total Cash Flow 14,69,200 10,48,300 -8,41,348Opening Cash Balance 0 14,69,200 25,17,500Closing Cash Balance 14,69,200 25,17,500 16,76,152

Cost Sheet

COST SHEET (No of Units Sold: 1,01,25,000)


63/69

63

Particulars Amt (Rs.) Total Amt Cost/UnitDIRECT MATERIALSOpening Stock

Straws -Flavours -Filters -Total - -Add: Purchases

Straws 51,16,800.00Flavours 1,02,33,600.00Filters 30,70,080.00Total Purchases 1,84,20,480.00 1.82Less: Closing StockStraws 78,000.00Flavours 1,56,000.00Filters 46,800.00Total Closing Stock 2,80,800.00 0.03Total Direct Material Consumed 1,81,39,680.00 1.79DIRECT WAGES 14,40,000.00 0.14DIRECT EXPENSES - -PRIME COST 1,95,79,680.00 1.93Add: Factory OverheadsCarraige Inwards 3,50,000.00Electricity Bills 7,50,000.00Rates & Taxes 70,000.00Repairs to Machinery 30,000.00Depreciation on Machinery 10,00,000.00Factory Insurance 50,000.00Fuel & Oil 40,000.00Salary of Operations Supervisor 1,44,000.00Welfare Expenses 1,63,606.00Add: Opening Stock of Work in Progress -Less: Closing Stock of Work in Progress -Total Factory Overheads 25,97,606.00 0.26WORKS COST 2,21,77,286.00 2.19

Add: Office and Administrative ExpensesStaff salary 11,04,000.00Telephone charges 50,000.00Electricity Bills 1,40,000.00


64/69

64

Audit Fees 85,000.00Salaries to Promoters 7,20,000.00Legal Fees 12,000.00Printing & Stationary 40,000.00Depreciation on Office Equipments 1,50,000.00Establishment Expenses 15,000.00General Expenses 1,20,000.00Total Office and Administrative Overheads 24,36,000.00 0.24COST OF PRODUCTION 2,46,13,286.00 2.43Add: Opening stock of finished goods - -Less: Closing stock of finished goods 2,50,000.00 0.02COST OF GOODS SOLD 2,43,63,286.00 2.41Add: Selling & Distribution Overheads

Advertising & Promotion 5,00,000.00Packaging Material 4,75,000.00Carraige Outwards 4,85,000.00Total Selling and Distribution Overheads 14,60,000.00 0.14COST OF SALES 2,58,23,286.00 2.55Add: PROFIT 1,85,51,714.00 1.83SALES 4,43,75,000.00 4.38

Break Even

Initial InvestmentTotal Owned Funds 1,80,00,000.00Secured Loan 70,00,000.00Unsecured loan 10,00,000.00Total Investment 2,60,00,000.00

YEARS Profits Cumulative ProfitsYEAR I 1,23,56,199.80 1,23,56,199.80YEAR II 1,40,99,805.86 2,64