Cocoa Making Business- Business Plan with the Profit Margin

The cocoa or chocolate business in India is now taking high acceleration; this business can be started at a low investment and yet extends to provide high profit. It has now become an economic concern for the cocoa manufacturing companies to maintain the sustainability of cocoa production. To deal with this issue, the Cocoa and Forest Initiative (CFI) was started in 2017, according to which WFC (world cocoa foundation) and prince whales ISU came in partnership. Chocolate is a product that needs lengthy procedures of preparation. The process involves harvesting cocoa in the first place, then refining cocoa beans, then shipping them to cocoa manufacturing factories where cleaning, coaching, and grinding takes place.

Related Projects: - Bakery and Confectionery Products

If you have raised the above lines carefully, it is clear that the entire manufacturing system is not confined to one particular stage. And it involves contribution from different sectors, which ultimately leads to demand for more employment and hence carries huge profit chances.

Process of Export of Cocoa

From trees to sacks:

Farming of cocoa requires hard manual work and very intensive labor work, caring and harvesting of beans require constant attention. One plant carries almost 20-30 seeds; it takes one year to produce half a kilo of cocoa. Then it needs to be fermented, dried, cleaned, and packed.

From sacks to powder:

These sacks that contain unprocessed beans are then purchased by intermediates to sell them to the exporters. Then, beans French to grinding companies where it gets processed. This task is mainly performed by Global north companies, there, beans are crushed, and shells are removed, roasted and finely ground. This is then processed from cocoa powder.

Growing Of Cocoa Business (Stats)

In 2019, CFI declared major points under which all cocoa industries were asked to manage high transparency and sustainability.
West African countries rank on top in cocoa production by contributing 70% of the world’s cocoa production. Ivory Coast and Ghana are considered as the largest source of cocoa as they combine to produce more than half of the world’s cocoa.
Approx 90% of cocoa is grown by small family farms of 2 to 5 hectares, while large plants contribute only 5% or more. Cocoa production is the root source of livelihood to almost 50 million farmers, rural workers, and their families in the global south.

Points That Enhance Cocoa Business Margin

Potential of chocolate making business

Chocolate is produced from the seed of a cocoa tree which means, total chocolate production directly depends on coca manufacturing. Hence, setting up factories and companies to access cocoa import-export can provide huge benefits. Chocolate comes amongst those products which are loved and accepted throughout the world. So the demand for chocolate is always high.

Ease to get the license for chocolate making business

Before you start your cocoa manufacturing business, you will need permission from some government authorities. But here is the advantage, getting a license for a cocoa manufacturing business is comparatively easier than other products. The reason behind that, it is a food product and that is too high in demand.

Fulfillment of equipment demand for cocoa manufacturing

To set up a cocoa manufacturing base you will need some essential tools including: Cutters, Refrigerator, cheese waxing machines, Bean bar equipment, spinning machine; the list is a bit long.

How This Book Can Serve As Help:

If you are looking to start a business in cocoa manufacturing, then we advise you to buy this book named ‘The complete technology book on cocoa, chocolate, ice cream, and other milk products’’ by NPCs. This book will help you understand the different stages of the manufacturing of cocoa, and also enable you to know the strategy of how you can earn good profits in little investments.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:

Good Present/Future Demand
Export-Import Market Potential
Raw Material & Manpower Availability
Project Costs and Payback Period

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This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.
This report provides vital information on the product like its definition, characteristics and segmentation.
This report helps you market and place the product correctly by identifying the target customer group of the product.
This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.
The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.

The report contains all the data which will help an entrepreneur find answers to questions like:

Why I should invest in this project?
What will drive the growth of the product?
What are the costs involved?
What will be the market potential?

The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product. The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

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Our research reports broadly cover Indian markets, present analysis, outlook and forecast.
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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
Requirement of Land Area
Rates of the Land
Built Up Area
Construction Schedule
Plant Layout and Requirement of Utilities

Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR