Meat Shop - Mutton and Beef [Rs. 1.42 million]

Meat Shop - Mutton and Beef [Rs. 1.42 million]
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21 August 2019
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The demand for meat is rising with growing population. A number of small shops are operating in almost every residential and commercial area. However, these shops seldom follow required cleanliness standards; except for those few recently introduced in high income group residential areas. With increasing public awareness of hygiene, the trend is shifting towards neat / clean hygienically maintained shops. The proposed outlet is expected to cash on this new trend.

The proposed meat shop would supply hygienically processed, quality mutton and beef. The shop is proposed to be located in a commercial market of residential area belonging to middle or upper middle income group. The projected products available in the shop will include mutton and beef (with bone and boneless) minced meat, supplied according to the customer’s requirement.

The total initial project cost for setting up an outlet is estimated at Rs.1.42 million with capital investment of Rs.0.54 million and working capital of Rs. 0.88 million. The project is proposed to be financed through 80% debt and 20% equity. The Net Present Value (NPV) is projected around Rs. 2.30 million with Internal Rate of Return (IRR) of 52% and payback period of 2.76 years. The legal business status of this project will be ‘Sole Proprietorship’.

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