Munching of Snacks or Namkeens has been a traditional consumption practice in India. Snacks are often taken in between meals and even served when there are guests over. Snacks are important for energy and nutrients that we need throughout the day. Healthy snacks between meals also curb our hunger and keep us from over-eating at meal time. Snack food generally comprises ready-to-eat mixes, chips, namkeen and other light processed foods. In terms of market share, namkeen ranks #1 compared to all other segments such as chips, extruded snacks and others. Namkeen is the Hindi word used to describe a savoury flavor. The word namkeen is derived from the word namak (meaning salt). It is also used as a generic term to describe savoury snack foods. Increasing consumer's awareness towards healthy and packaged traditional snacks has created a huge demand for Namkeen in past couple of years. The consumers are observed to be shifting from loose packaging Namkeen to standard packaged brands.

A larger percentage of young population, long and stressful work hours, need for socialising and increasing travel time has created a need for convenient food options. As a result, people are increasingly looking at packaged and ready to eat snacks food options. The ever-increasing number of working professionals, rising urbanisation, lifestyle changes, local availability of snacks in small packages, affordability along with the growing popularity of convenience foods and increasing drive for hygiene, greater taste and consistency are also driving the market for Indian snacks. Thus the changing need of customers and diversity in Indian culture has created better opportunity in the food production and distribution system. Further, factors such as higher purchasing power and rising population of India are also affecting the market dynamics significantly.

Indian traditional snacks market has shown tremendous growth in the past couple of years and will be worth more than Rs 1 billion by the end of 2024. Being a most vibrant industry, it has seen an unprecedented growth in the recent past and continues to expand rapidly. About 30% coverage of this market is in the hands of organized trade players dominated by Haldiram’s, Pepsico, Balaji (Wafers & Namkeens), ITC (Bingo), Prataap Snacks (Yellow Diamond), Bikanervala (Bikano), DFM Foods (CRAX) among others. The branded segment is expanding at the rate of approx. 15% per annum whereas the entire market is growing at the rate of 7-8 per cent. Easy thawing and baking, extended shelf life, provision of instant service along with retention of taste and freshness facilitate the demand for such products, thereby augmenting the sector growth. Further, fast paced and hectic lifestyles have positively influenced the growth of the global market. As a result, manufacturers are gaining profits by supplying these food items.

The proposed project is that of setting up of Namkeen Making Business unit at the proposed location. The potential target customers and market for the proposed set-up would comprise of the customers of local Retail Stores, Departmental Stores, Convenience Stores, Supermarkets/ Hypermarkets, Specialist Stores/ Parlours, Restaurants, Hotels, Canteens and Online Stores. 

A Project Report is not only essential for obtaining financial assistance from Bank/ Financial Institution/Funding Agency but also the most important document either to participate in the development schemes of MSME Sector/ Department of Industries or in completing various time consuming government formalities connected with planning and commercial operation of the proposed business project.

This Detail Project Report (DPR)/ Business Plan has been developed in a well-structured PDF Format (Easy to Download, Convert into MS WORD through www.pdftoword.com, Edit for Personalised Customisation and Finally Printing the Report) to be presented as a Ready Project Proposal immediately thereby saving precious time of the promoter in the process of completing requisite formalities in anticipation of setting up the business project. Accordingly, following Project Templates has been deliberately left blank in order to facilitate customisation by the perspective entrepreneurs based on personal requirements and furnish necessary information on actual basis.

§ Project at a Glance                                     :             To be Filled Up as per Personal Requirements.

[Total Capital Expenditure, Working Capital, Estimated Cost of the Project, Amount of Bank Loan, Amount of Equity Capital and Amount of applicable Margin Money Subsidy – (Urban/Rural /General Category/ Special Category)].

§ General Information and Location          :             To be Furnished in the Blank Space.

[Name of the Unit/Firm, Address of the Proposed Project Location, Size of the Space Available and Occupancy under Ownership/Lease Agreement].

§ Promoter’s Background                            :             To be Furnished in the Blank Space.

[Name of the Promoter, Age, Communication Address, Educational Qualification, Work Experience and Special Training Attended, if Any].

The Project Report/ Business Plan so presented include all the important aspects containing the following details;

CONTENTS

1.    Project at a Glance

2.    Highlights of the Project

3.    Project Introduction

4.    The Project Proposal

5.    The Products and its Uses

6.    Prospect for Investment

7.    Potential Target Customers/Market

8.    Market Entry Strategy

9.    Process Details and Technical Aspect

10. Installed and Operational Capacity

11. Quality Control and Standards

12. Raw Materials and Consumables

13. Power and Utility

14. Tentative Implementation Schedule

15. Basis & Presumptions

16. Capital Investment Estimates with Detail Project Economics

17. Computation of Working Capital Requirement

18. Estimated Total Project Investment

19. Proposed Means of Project Financing

20. Estimated Annual Sales Turnover

21. Projected Profitability Statement

22. Calculation of Interest Amount

23. Depreciation Schedule

24. Term Loan Repayment Schedule

25. Debt Service Coverage Ratio

26. Break-Even Analysis

27. Projected Cash Flow Statement

28. Projected Balance Sheet

29. Internal Rate Return

30. Pay Back Period

The presentation also supplements with important facts and useful information covering the areas as indicated below;

LIST OF ANNEXURES

1.  Basics of Food Processing Business

2.  Indian Food Processing Industry- Current Scenario and Recent Govt. Initiatives

3.  Statutory Permits and Business Licenses required for the Project

4.  Beginner’s Guide to Start the Project

5.  Smart Tips to Identify Suitable Project Location

6.  Critical Success Factors in Food Processing Business and

7.  Marketing Strategy and Promotional Ideas to Boost the Sale of the Business.

LIST OF ENCLOSURES

ENCLOSURE-1: HANDBOOK OF NAMKEEN MAKING BUSINESS, PMFME SCHEME, MINISTRY OF FOOD PROCESSING INDUSTRIES, GOVT. OF INDIA.

ENCLOSURE-2: E-BOOK ON PMFME SCHEME, MINISTRY OF FOOD PROCESSING INDUSTRIES, GOVT. OF INDIA.

ENCLOSURE-3: LATEST LIST OF “ONE DISTRICT ONE PRODUCT” (ODOP) FOR 713 DISTRICTS OF 35 STATES/UNION TERRITORIES UNDER PMFME SCHEME, MINISTRY OF FOOD PROCESSING INDUSTRIES, GOVT. OF INDIA.

Thus the information provided would help in identifying in advance the infrastructure/resources required for the Project and approach the concerned government agencies accordingly. Hence, it becomes a complete document for further action towards realising the dream of becoming an entrepreneur.