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Business Analysis End Term Project: Raw Rice 65 Husk 21 Broken Rice 4 Rice Bran 8 Rejected Rice 1 Impurities 1

Business Analysis End Term Project involves three key steps: 1) Identifying operational metrics like moisture rate of paddy and yield percentages for raw rice, husk, bran, and broken rice. 2) Analyzing financial data for the top five rice companies in India to compare metrics like return on equity, net profits, asset turnover, and sales growth. 3) Conducting a five forces analysis to determine the strongest industry forces and opportunities/threats for new entrants, finding threat of rivalry and buyers' bargaining power to be high for the rice milling industry.

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Gokul Karwa
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68 views3 pages

Business Analysis End Term Project: Raw Rice 65 Husk 21 Broken Rice 4 Rice Bran 8 Rejected Rice 1 Impurities 1

Business Analysis End Term Project involves three key steps: 1) Identifying operational metrics like moisture rate of paddy and yield percentages for raw rice, husk, bran, and broken rice. 2) Analyzing financial data for the top five rice companies in India to compare metrics like return on equity, net profits, asset turnover, and sales growth. 3) Conducting a five forces analysis to determine the strongest industry forces and opportunities/threats for new entrants, finding threat of rivalry and buyers' bargaining power to be high for the rice milling industry.

Uploaded by

Gokul Karwa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Business Analysis End Term Project

1. Identify (and also define!) three operational metrics for your business
(for e.g. some
metrics for airline companies : Available Seat Miles, Revenue Passenger Miles, Load
Factor, Yield etc)

 Moisture rate of Paddy: because it is the most sensitive part of the business. If wrong
type of paddy is purchased or undesirable quality of paddy is purchased then it’s going
to be a big mess. Since paddy has not fix rate, paddy is purchased in Ghalla Mandi (Food
Market) and paddy is purchased by auctions. So to purchase at a low cost is also
responsibility, because cost is the major competitive edge.
 The revenue from kinds of by-products are given as follow:
o Husk of Rice (Toh)

o Bran (Powder of Rice)

o Broken Tip (Nakku)

o Broken Rice (Totah)

o Damaged Rice (Dhaghi Daanay)

 Yield and Production: The raw material used in rice mill is raw paddy.

Particulars Yield (%)

Raw Rice 65

Husk 21

Broken Rice 4

Rice Bran 8

Rejected Rice 1

Impurities 1

2. Identify an industry of your choice. For this industry (using data from secondary
sources. For e.g. annual reports, equity research reports etc), pick top 5 companies in
the industry by sales. For these companies, fill the following table:

Company RoE (Return Net Profit Asset Leverage


on Equity) for Margins Turnover (Assets/Equity) CAGR in sales
FY 2017 For FY 2017 Ratio for FY for FY 2017 for the past 5
2017 years
Kohinoor 8.58 % -71.06 Cr 5.53 1,013.05 6.58%
foods
L.T Foods 11.23% 41.92 Cr 7.97 979.75 9.76%
KRBL 13.56% 461.71 Cr 6.43 1,345.45 12.42%
Usher agro 9.81% -1,088 Cr 9.87 1109.88 8.48%
TRL Riceland 10.09% -40.06 Cr 11.09 788.12 10.66%

3. Perform five forces analysis for any industry of your choice using the frameworks
discussed in class. Which of the five forces is the strongest in the industry? From the
analysis determine the opportunities and threats for a new entrant into the industry

Threat of Rivalry
• Competitors are Numerous (H)
• Fixed costs are high (H)
• Industry growth is high (L)
• Products are undifferentiated or are commodities (H)
• Brand loyalty is insignificant & Switching costs are low (H)

Threat of New Entrants


• Products are Undifferentiated (H)
• Brand names are well known (L)
• Initial capital investment is low (H)
• Government policy is an issue (L)

Suppliers Power
• Many suppliers & Many buyers (L)
• Switching cost is low (L)
• Buyers are not price-sensitive and uneducated regarding the product (H)
• Product is differentiated (H)
• No Forward integration (L)
Buyers bargaining power
• Many sellers & Many buyers (M)
• Switching cost low (H)
• Cannot backward integrate (L)
• Consumer is price sensitive & Well-educated about the product (H)
• Purchase in large volumes (H)

Threat of substitute
• Consumer switching cost high (L)
• Substitute product is more expensive than industry product. (L)

4. Draw the business model canvas for your own business

Paddy brokers Paddy


Farmers Order Flexible Credit No interest
& traders procurement Processing lot size
Taking period is charged
"Satake Sortex Rice" in 25kg Traders
packing for B2B sales to traders
with year round stock
Machinery & availability and flexible lot
Annual
Order sizes processingconsistency. Priority orders for
spares Maintenance Packaging Invoicing Fringe Volume
Dispatch Our industry is ISO-12000 regular traders
Suppliers Contract benefits discounts
certified
Brokers

Labour
Logistics
Agencies

Land &
Man-power
Working Direct Export
Machinery Capital sales
Ware-house Banks

Paddy (Raw Packaging Logistics


Gunny & PP material) Material
bags
merchants

Full Rice Rice Bran Rice Husk

Broken Rice Dis-colour


Rice

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