Production of corn sticks

Business idea involves the creation of a workshop for the production of corn sticks in plastic packaging, weighing in at 50 and 150 gr. Products will be positioned in the mid-priced and sold in the region of production location, within the same area. The main target market segment - families with income "average" and "below average", having one or more children. The main point of sale products - own exit trade (through non-stationary network), as well as brick and mortar retail in the region based.

Assessment of the potential and prospects of the business

Corn Sticks - enough mass, which enjoys considerable popularity in Russia food. According to the classification of marketing, corn sticks belong to the category of breakfast cereals, whose market in Russia is growing fast enough - at the level of 5-10% per year. There are several factors that underpin the growth of this market in the future and are good prospects for business development.

• Firstly, the consumers of corn sticks in Russia are almost all age groups - although children in the target segment of the market structure, of course, dominates.
• Second, we have already formed a decade of tradition, consumption of this product, which also creates good prospects for the business of producing corn sticks.
• Third, the sales of this product have almost no seasonal component - the demand for sticks there year-round, but because the manufacturer can calculate the stability of the financial flows of their business.
• Fourth, a considerable role in stimulating demand for corn sticks and belongs to the producers themselves. Actively experimenting with brands, flavors, packaging design (though it should be remembered that the main target group of consumers - children - it is very sensitive to these parameters), the manufacturer can warm up the demand for their wands.

Distribution channels corn sticks

With regard to sales channels, they depend on parameters such as the scale of production and price category, which presents the product. Of course, that in terms of proximity to the consumer a great option to establish marketing - to supply grocery networks. However, there are some nuances:

 - Leading retailers have agreed to take only the branded product - known consumer brand, actively supports the marketing (advertising, consumer-promotion activities in the hall).
 - In addition, the network has enough high fees "for entry».
 - Also networks is crucial to ensure timely delivery, with stores around the network.

Therefore, the promotion of corn sticks through food chains makes sense only if a sufficiently large scale business and its product coverage, at least, several regional markets. It should be remembered that on the shelves of chain stores will have to tough competition with well-known buyers premium imported sticks - class - in this context, investments in marketing may be too high and does not justify the expectations of business owners.

At the same time average, and especially small businesses on a regional scale (one service market - the city, region), the product offers an affordable medium and economy class, you should build a marketing differently. In particular, for efficient micro-business is seen having its own distribution network (for example - the same exit trade at the central market of the city). To ensure that sales of products in several large scale, it is advisable to cover the food shops of the city (as well as kiosks, tents, stalls, etc.), carrying these terms finished products own transport.

echnology izgtotovleniya corn sticks and production plan for business

The technological process of corn sticks provides thermal and mechanical processing of corn grits, with the addition of water in the cooking process, and other ingredients (according to the recipe).

For the manufacture of corn sticks require feedstock (corn semolina, salt, sugar powder, sunflower oil) and drinking water. The consumption rate of 1 ton sticks feedstock is:

• cereals - 720 kg;
• salt - 7 kg;
• Powder - 130 kg;
• Oil - 130 kg.

Equipment for the production of rods in Russia offer a variety of manufacturers, in particular - the plant "Prodselmash." As part of a complete line of "Prodselmash" includes a mixer to prepare cereals, powdered sugar mill, extruder, conveyor belt installation for preparation and submission of an oily suspension, a coating drum, dispenser of powdered sugar, Pier and vibrolotok-sifter.

The productivity of the line, and thus the price depends on the options of the extruder. In particular, the same "Prodselmash" offers three options:

1. extruder with low productivity (up to 30 kg of sticks per hour) for the production of mini-sites (cost options - 443, 5 thousand. Rubles);
2. The single-screw extruder average performance (up to 100 kg of sticks per hour) for small businesses (cost options - 2831, 0 thousand. Rubles);
3. The twin-screw extruder E2SH-150 increased productivity (250 kg sticks per hour) for medium-sized businesses (cost options - 4316, 5 th. Rubles).

For small businesses, the production of corn sticks will be enough production area of ​​100 m2, of which about 60m2 will be given directly under the line, another 25 m2 - for storage of raw materials and finished products, 15 m2 - a utility room for the workers.

Any additional equipment for the storage of raw materials as well as finished corn sticks is not required.

A feasibility study of the project

To start investing in starting a business are:
• Purchase of a line for the production of corn sticks capacity of 30 kg per hour - 443, 5 thousand. Rubles.
• Delivery and installation of equipment - 100 thousand. Rub.
• Repair of buildings in accordance with the requirements of SES - 200 thousand. Rub.
• Creation of inventory - 200 thousand. Rub.
• Other costs - 50 thousand. Rubles.

Total upfront investment in a project on business in the production of corn sticks will be 993,000 rubles.

The calculation of earnings:

Regulatory capacity of the line is 30 kg per hour, which is at work in 8-hour display will be 0, 24 tons per shift. Provided 100% load and operation of 250 days, the annual production of corn sticks reach 60 tons.

The wholesale price of corn sticks around 5 rubles per pack of 50 grams, which is equivalent to 100 thousand. Rubles per 1 ton.

Thus, the annual revenue of 6,000,000 rubles.

Background:

 - Exit the shop to self-sufficiency: 3 months after the start.
 - Exit at 100% capacity: 6 months after starting
 - The planned profitability: 25%
 - Return on investment: 18 months