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A grocery store, often known as a grocery or grocery shop, is a store that sells a wide variety of food products, both fresh and packaged. These are referred to as kirana shops in India. The 12 million tiny grocery stores known as kirana or mom-and-pop shops account for 90% of India's $810 billion food and grocery sector. Small grocery or kirana stores are often owned and run on a small scale. The grocery store should be located near a public transportation stop so that people may easily access it. Over the last ten years, the retail market in India has experienced significant growth and transformation. The overall market size of the Indian retail market was $275.8 bn in 2008-09 and has grown to $700 bn as of 2019. India is currently the 4th largest retail market in the world and is further expected to grow to $1.1 to 1.3 tn by 2025. The retail landscape in India is largely unorganized and holds 88% of the overall retail market; it is a nation of shopkeepers. This unorganized segment, otherwise known as the informal segment, consists of 13 million Kirana and neighborhood stores

layers background

Proposed Project Grocery Store

Sales per annum (in Rs. Lakhs)

Year

40.00

Year

44.00

Year

48.40

Year

53.24

Year

58.56

Final Product / Service

Grocery supplies

Electrical Equipments / Fittings Required

Light

Fan

Refrigerator

Employment Generation

2 Staff

Business Premises

1Lease (200 sq. ft.)

Equipments Required

1N.A.

Furniture Required

1Chairs

2 Counter

Project Cost (subject to respective DPR) In Lakhs

Premises (Lease)	00.00
Interior Civil Work including False Ceiling, Wall Rack, Partition Rack, Etc. (200 sq. ft. @ Rs. 700 per sq. ft.) (Shop Premises)	1.40
Equipments	00.00
Furniture and Fixtures	0.05
Electrical Equipment / Fittings	0.60
Desktop and Printer	00.00
Software Cost (Tally/SAP)	00.00
Inverter (10 kv)/ DG Set	0.25
Preliminary & Preoperative Expenses	0.79
Sub-Total (A)	3.09
Total Working Capital Req. (Lump sum) (B)	5.00
Total Project Cost (A+B)	8.09

Means of Finance In Lakhs

	Amount
TERM LOAN (75% of A)	2.31
WORKING CAPITAL LOAN (75% of B)	3.75
Total	6.06
Equity	2.02
Total Funds Required	8.09

Financial Benchmarks

	Year	Year	Year	Year	Year
Target Revenue	40.00	44.00	48.40	53.24	58.56
Break Even Point	44%	41%	38%	36%	34%
DSCR including Principal Repayment	6.40	7.78	9.46	11.53	14.10

Basic Assumptions

Power Requirement	Rs. 60000 p.a.
Power Rate per unit	Rs. 8.5/unit
Interest Rate Assumed	8.5% p.a.
Repayment Period	5 years repayment

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Whether the activity is in the Negative list under MSME?

No

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