Introduction:
A glass of sugarcane juice is all you need on a hot day at work or a day of
street shopping. Now that summer is right around the corner, you will find
tiny sugarcane stalls at the end of every lane. This tasty juice extracted
from fresh sugarcane not only quenches your thirst but also benefits you in
more than one way in terms of health. India is the largest producer of
sugarcane.
Sugarcane, thanks to its natural sweet taste, does not need any sugar
substitutes when relished as a juice. In fact, you can add a little flavour
with some mint, pepper, black salt or ginger. I’m sure you’re craving some
sugarcane juice already!
Market potential:
Sugarcane juice is traditionally sold in India by roadside vendors, often in
unhygienic conditions. That’s why a few entrepreneurs have taken the
initiative venturing into the marketing of branded sugarcane juice through
a chain of franchised outlets. Initial indications are that this model is
headed for success. There is great market potential for bottled or
tetra-packed sugarcane juice like any other fruit based beverages or soft
drink.
Sugarcane juice is obtained by squeezing the sugarcane stalks in a juice
extracting machine. Sugarcane juice is a rich source of fibres, vitamins,
minerals, and phytochemicals, among others. Moreover, it is an instant
source of energy. Due to its low glycemic index, it does not spike the
blood sugar level. Sugarcane juice is suitable for people suffering from
diabetes when consumed moderately. Moreover, it balances the body heat
and creates a cooling effect. Many dieticians recommend people to
consume sugarcane juice for aiding the weight loss process. The rising
awareness about the health benefits of sugarcane juice is propelling the
market growth. Moreover, increasing hygiene concerns amongst people is
driving the popularity of packaged sugarcane juice.
Market Outlook India, the second largest producer of sugar after Brazil
accounts for 16 percent of world production. Largest sugarcane producing
state of India is Uttar Pradesh, which has 38.61% share in overall
sugarcane production. The second and third largest states are Maharashtra
and Karnataka.
India is also the 2nd largest producer of sugarcane in the world. Apart
from being the 2nd largest producer of sugarcane in the world, India is also
a leading sugarcane exporter in the last financial year India exported more
than 28 Lakh tons of sugarcane.
Our major competitor is RAW Pressery in India. Raw Pressery is a clean
label beverage brand that delivers cold press juices, smoothies, soups, and
nut milk to customers. Raw Pressery directly works with farmers to get the
best quality fruits, vegetables, and nuts from across the world, pack the
goodness in a bottle, and deliver it to the customer’s doorstep. How are we
different?
Raw presser is in multiple domains and not just fresh juices which means
that they are maintaining a lot of SKUs which leads to compromisation on
part of the taste of its products. We went through the review segment of
Raw Pressery and it consisted of a lot of negative comments about its taste
that it is not natural and we ourselves tried its sugarcane juice and the taste
was nowhere near to the local street thela’s juice taste. The shelf life of
their products is 3 days and the reason they say to justify this is that they
don’t use any preservatives.
Our focus primarily would be on fresh juices, initially on sugarcane juices,
which would help us to undertake standardisation in the manufacturing
process and maintain a good taste. We would also be using new
technology to improve the shelf life of our product too . We would be
using some organic preservatives to extend the shelf life in order to
provide a refreshing packaged sugarcane drink to people so that they can
keep a stock of it and enjoy them on their travels or as per their needs.
Drivers-
➔ Increasing awareness about health benefits of sugarcane juice
➔ Growing inclination of consumers toward all-natural and not from
concentrate juices.
➔ Increasing demand for On-The-Go food and beverages
Restraints-
➔ Stringent safety regulations
➔ High marketing and promotion cost
Trends-
➔ Rise in popularity of Cold Pressed sugarcane juice
➔ Growth of organised retail sector
Opportunities-
➔ Rising Hygiene concerns to generate huge demand for packaged
sugarcane juice.
➔ Increasing demand for organic beverages
Manufacturing:
Machinery required
1) Juice Extractor
A device used to extract sugarcane juice is a
sugar cane juice extractor.
These juice extractor devices were created to
assist humans in crushing and rolling sugar cane
to release its juice.
2) Bottle Filling Machine
This device fills juice bottles to the appropriate
sizes and reduces waste.
3) Jet Washer
Dirt and foreign objects are removed with it.
4) Material handling and other Equipments
These equipment are used for material handling.
Other equipments like water pumps, weighing
machines, etc are also used.
Financial Feasibility:
It is the ability of a project to achieve sufficient income, credit, and cash
flow to financially sustain the project over the long term and meet all debt
obligations.
Fixed Investment to be done=
1. Sugarcane juice extractor = 850000
2. Bottle filling machine = 240000
3. Bottle pasteurizer = 170000
4. Soaking tanks = 30000
5. Material handling and other equipments = 250000
Total cost = 15,40,000 rupees
Let’s take a look at the product cost:
One 200 ml bottle of sugarcane juice will cost us around rupees 20
including raw materials cost, packaging and labelling cost and
transportation cost.
Note that customer acquisition cost is not included here.
Selling price = 40 rupees
Profit margin = 15-17 rupees net
Marketing:
Packaging-
We will be using bottles made of polyethylene terephthalate (PET) for
packaging sugarcane juice. PET bottles are easily customizable,
transportable, leak-proof, and recyclable, making them a sustainable
packaging alternative. The high usage of PET bottles, owing to their
convenience, attractive product design, and social media trends may
positively affect the growth of bottle packaging in the future. On the
contrary, glass bottles are fragile and can lead to breakage while
transportation, resulting in a loss. Usage of durable and good quality glass
bottles would unnecessarily increase the product cost further impacting the
unit economics.
We will be launching our packaged sugarcane bottles at sizes of 200 ml
and 500 ml. 200 ml bottles are very fast selling and 500 ml for those in
group so they need not to carry multiple bottles while being on some tours
and business trips.
Being a beverage company and being in the packaged juices and aerated
drinks industry, the correct use of marketing would play a significant role
in the establishment and growth of our brand. The marketing campaigns
and strategies to be undertaken by us are as follows-
Content Marketing- Content marketing is a strategic marketing approach
focused on creating and distributing valuable, relevant, and consistent
content to attract and retain a clearly defined audience — and, ultimately,
to drive profitable customer action. Social media marketing is playing a
significant role nowadays in the promotion of products and services of
various brands and a major part of customers are coming from these social
media platforms. We would be advertising our product on our handles and
will also collaborate with various food, beverage and healthy appetite
influencers in order to reach the broader mass.According to the statistics
provided by the Content Marketing Institute, the importance of content
marketing is growing, as 70% of B2B marketers are creating more content
than they did one year ago. This is explained by the fact that “60% of B2B
decision makers say branded content helps them make better purchase
decisions, while 61% of consumers are more likely to buy from companies
that offer custom content”
Event Marketing- We would also be sponsoring college events and fests
as it caters to a lot of students annually. Also there are a lot of other
companies who are also sponsoring the same event and so we would be
able to get benefit in respect of the awareness for our product.
Referral Marketing- This has proven to be a really successful marketing
strategy in the past. Referral marketing is a marketing tactic that makes use
of recommendations and word of mouth to grow a business’s customer
base through the networks of its existing customers. Referral marketing
can take many forms, but at its heart, it’s a way to get your biggest fans to
help spread the word about your brand. In other words, referral marketing
turns your current customers into brand advocates.
● A word-of-mouth impression drives at least 5x more sales than a
paid impression.
● Customers acquired through word-of-mouth spend 2x more and
make 2x as many referrals themselves.
● Referred leads convert 30% better and have a 16% higher
lifetime value than leads acquired via other channels.
Retaining Repeat Sales Strategy- To retain our customers towards our
products, we will be providing them additional discounts and incentives in
comparison to one time visit customers on our website. In this way, we
aim to have a repeat customer rate at around 20-25% initially.
Supply chain:
Introduction
Supply chain management is concerned with managing the network of
facilities and provides the options for distribution. These options perform
the functions of raw-materials procurement, then conversion of these raw
materials into transitional or finished products and finally the distribution
of these products to the customers.
Sugarcane juice products usually change hands many times along the
supply chain. It is thus important for all involved in the intermediate steps
to be familiar with the total sequence of juice production.Full vertical
integration – where one company has all the steps in the production chain,
from fruit harvesting to distribution of packaged consumer product, under
a single roof – is rare in the orange juice industry. This is due not only to
geographical factors but also to the way it is difficult to preserve it.
Materials Suppliers Cost
Sugarcane Bijnor’s farmers , Uttar ₹3.5/kg
pradesh
Preservative Desire chemicals pvt. ₹2/per piece
LTD.
Bottles PET bottles ₹ 2.85/per piece
Lemon Bijnor’s farmers, Uttar ₹0.75/per piece
pradesh
Relation with retailers and wholesalers
Better Communication
Technology change the way a firm’s communicate with customers. It is
important for employees to interact with clients in today’s business world.
When employees use technology to communicate with customers, it shows
the good image and reputation of the firm.
Minimise Operation Problems
Technology also helps a business understand its current financial and
operation problems and let business owners understand and learn the best
way to manage the organization.
Better Culture for the business
Technology creates a better culture within a business. This is because
employees at different locations have better communication. Technology
often helps workers to communicate without any obstruct.
Under the protection
Provide retailers with protection of warranty and assurance of return of
expired product or get half of the money back.
Waste management:
One of the byproducts of sugarcane after extracting its juice is bagasse. It
has a lot of alternative uses and this waste can be easily managed and can
be used for some side revenue.
Uses:
❖ It can be used for generating electricity and this solution has found
favour in a number of cane producing countries such a Hawaii,
Australia, Reunion and Mauritius and with modern equipment some
450 kWh can now be produced per tonne of mill-run bagasse.The
generation of electricity from surplus bagasse is undoubtedly the
easiest and best utilization of this byproduct for most cane-producing
Third World countries.
❖ Paper and Pulp :Good quality wrapping and magazine paper can be
produced with a high percentage of depithed bagasse as raw
material. The availability of a fair size internal market, sufficient
surplus bagasse and fair quality industrial water are the usual
constraints. We will supply bagasse to the paper manufacturing
industries and in this way will be able to manage the sugarcane
waste sustainably and also earn some revenue from the same which
will be ultimately beneficial to our startup.
