Ankit businessplan

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Ankit businessplan

  1. 1. Table of ContentsSr.no. Particular Pg.no. 1 Project at Glance 3 2 Owner’s & Promoter’s bio data 5 3 Location Justification 6 4 Product Introduction 8 5 Market Analysis & Market Competition 9 6 Production Process & Schedule 10 7 Financial Details of Project 14 8 Financial Arrangement & Sources of Finance 19 9 Profitability of Project 20 10 Project Summary 25 11 Break Even Point 26 12 Fund Flow Statement 28 13 Projection For Five Year’s 29 14 Advancement & Future Prospects 30 15 Conclusion 31 PREFACE 1
  2. 2. Management is a field which requires both managerial & practical knowledge.Practical knowledge helps students to develop the managerial skill & provideexperience. So far as syllabus concerned, students of M.B.A. has to prepare “BUSINESSPLAN” with a view to educate the students of management. Students become awareabout the formalities needed to establish a business unit. The object of this report isto persuade the officers of financial institute that project proposal will be wellfurnished & also will be efficient & economically viable. So there is no chance ofinsolvency & finance provided will not be wasted. With a view to fulfill the importance of the BUSINESS PLAN, I have madethis report on “TOOTH BRUSH”. The information laid in this report are enough forestablishing an industry of the said product & fulfilling document requirement tofinancial institution for receiving mentioned finance. ACKNOWLEDGEMENT 2
  3. 3. I am very thankful to all who have helped me in preparing this report. I amvery much happy to present this BUSINESS PLAN expecting that you willacknowledge it. I am thankful to advisor who provided me all the types ofinformation in preparing this BUSINESS PLAN. I am extremely please to present this report to Dr.Rajesh Patel, who inspiredme to prepare this report in comprehensive manner. I am thankful for his co-operation & assurance which became helpful to me in preparation of this BUSINESSPLAN I hope that all of this information which I have described in my BUSINESSPLAN will satisfy you.Place : - Junagadh Yours faithfully,Date : - (Rabadiya Ankit B.) 1. PROJECT AT A GLANCE 3
  4. 4. (1) Name of the unit :- GOPAL INDUSTRIES(2) Address for communication :- Mr. Rabdiya Ankit B. GIDC Estate, Junagadh(3) Type of the unit :- Partnership firm(4) Name of the product :- Tooth Brush(5) S.S.I. Registration No. :- Applied for(6) Subsidy Registration No. :- Applied for(7) Location of the unit :- GOPAL INDUSTRIES GIDC Estate, Junagadh(8) Owner’s Names & Addresses :-  Mr. Rabdiya Ankit B. 4
  5. 5. “SURANI NIVAS”, Gandhi Gram, Junagadh Mr. Rabdiya Dhaval B. “SURANI NIVAS”, Gandhi Gram, Junagadh Mr.Hirani pinakin A. “RAJ NIVAS”, Gandhi Gram, Junagadh 2. OWNER’S/PROMOTER’S BIO-DATA 5
  6. 6. Name Age Academic Working Nature of Property Contri. Total Qualification Experience Resp. Details in the share unit in ProfitRabdiya 21 M.B.A. FRESH Finance Building 40 % 40 % ManagerAnkit B.Rabdiya 24 M.B.A. 2 year Marketing Land 30 % 30 %Dhaval B ManagerHirani 28 B. Sc. 3 year Production Machi. 30 % 30 % Managerpinakin A. 3. LOCATION JUSTIFICATION 6
  7. 7. Justification of location is an important consideration for the selection of sitewhere an entrepreneur wants to establish his industry. So, while selecting location forthe industry, all the important factors are considered to run the business successfully& effectively. The place of proposed manufacturing activity has been selected on the basis offacilities enjoyed by it. The most important advantage of the location GIDC ofJunagadh is that it is situated in GIDC area where we get all necessary formalitieslike road transportation, water facility, electricity & workers. Another object for selecting this location is that Junagadh district isindustrially backward area. So, there are good chances of development of this area.There are also employment opportunities for the people of this region & their livingstandard can be improved. Also the marketing activity of our product can be madeeffective in near marketing place. Finally the most important advantage of this location is that the raw materialrequired for product will be easily available by the means of transportation facility.Thus, the location of said unit is most suitable & beneficial which would reduce thecost of our product. Infrastructural facilities :- 7
  8. 8. As we mentioned above that our unit is established in GIDC where it can getall infrastructural facilities easily. We get following facilities of infrastructure whichmake our product more effective.  Road facility  Water facility  Power facility  Transport facility  Manpower facility 4. PRODUCT INTRODUCTION 8
  9. 9. Toothbrush is a product which plays a vital role in our daily routine. When wesleep in the night i.e. before sleeping & when get up in morning i.e. after sleeping,the first thing which we need is Toothbrush. Now a day’s people adopt modernization & urbanization, so they usetoothbrush instead of simple “DATAN” because of more importance given to dentalcare & hygiene of teeth. It gives us a protection from many tooth disease & make ourteeth & mouth clean. Today, non-availability of datan in urban areas, people take toothbrush whichis the conventional method of tooth cleaning. There are various types of tooth brushavailable. The classification of toothbrush is mainly on the age group of users i.e.Baby, Junior & Adult. 5. (A) MARKET ANALYSIS 9
  10. 10. Toothbrush has become daily requirement of each & every people because ofthe awareness of dental care & hygiene of teeth. So it is quite easy to introduce inmarket. The market status of toothbrush is increased day to day. Each & every personneed toothbrush in daily use. So its marketing activity can be made in wide spreadarea. Thus, there are greater chances of marketing performance. It is widely used in rural area also. Today people are aware about dental careso there is a great demand for toothbrush. Therefore item can be safely termed asmass consumption item. (B) MARKET COMPETITION There are different types of toothbrush available in market but due to quality &comfortless of this toothbrush, it can be helpful to complete with the competitors. Inmarket 70 % of toothbrushes are of multinational companies & 30 % of localcompanies. So, we have to compete with the 30 % of competitors. 6. (A) PRODUCTION PROCESS 10
  11. 11. The production process of our product toothbrush is described in followingpoints :  Cellulose acetate moulding powder is mixed with a suitable dyestuff &dried or polypropylene is fed into the hopper of an automatic injection mouldingmachine.  The material melted & injected into the multy cavity mould machine whereit takes the shape of tooth brush handles.  Tooth brush handles thus obtained are put into automatic tooth brushmaking machine for boring, bristle filling & tightening of bristle by fine steel orbrass wire is done.  The bristles are then trimmed to proper shape. Therefore brushes arepacked. Mainly there are 3 important features of our product : Unique V shape head. Thumb grip for comfortable brushing. Angular handle easily reaches all corners of the mouth. 11
  12. 12. The product mix of our product is given below : SR. NO. PRODUCT RATE 1 Ordinary Tooth Brush 12 2 Extra Bristles Brush 15 3 Baby Brush 10 (B) PRODUCTION SCHEDULE 12
  13. 13. In our unit, there are two shifts running for production purpose per day. Thereare 25 days of running the production activity in a month. So, 300 days productionunit works in a year. In a day there are two shifts from 8 : 00 a.m. to 4 : 00 p.m. &4 : 00 p.m. to 12 : 00 p.m.(i) Installed capacity :- The installed capacity of our unit is mentioned as under :SR. NAMEOF RATE DAILY MONTHL YEARLY TOTALNO. PRODUCT PROD. Y PROD. PROD. VALUE 1 Ordinary Brush 12 300 7,500 90,000 10,80,000 2 Extra Bristles 15 500 12,500 1,50,000 22,50,000 3 Baby Brush 10 400 10,000 1,20,000 12,00,000 TOTAL 1,200 30,000 3,60,000 45,30,0001 month = 25 days 1 year = 300 days(ii) Utilised capacity (75 %) :- 13
  14. 14. SR. NAMEOF RATE DAILY MONTHL YEARLY TOTALNO. PRODUCT PROD. Y PROD. PROD. VALUE 1 Ordinary Brush 12 225 5,625 67,500 8,10,000 2 Extra Bristles 15 375 9,375 1,12,500 16,87,500 3 Baby Brush 10 300 7,500 90,000 9,00,000 TOTAL 900 22,500 2,70,000 33,97,5001 month = 25 days 1 year = 300 days 7. FINANCIAL DETAILS OF A PROJECT 14
  15. 15. (A) Land :-(1) Survey No. :- …(2) Details of N.A. permission No. :- …(3) Details of the land :- SR. NO. PARTICULARS AREA RATE AMOUNT Squ. Ft. 1 Land: Open 1,500 1,000 15,00,000 2 Land development 2,50,000 expenses TOTAL 1,500 - 17,50,000 15
  16. 16. (B) Details of Building & Premises :- SR. PARTICULARS CONST. AREA RATE AMOUNT NO. TYPE Squ. Ft. 1 Factory shed R.C.C. WORK 500 450 2,25,000 2 Godown shed R.C.C. WORK 200 400 80,000 3 Office Room R.C.C. WORK 300 525 1,57,500 4 Staff Quarters R.C.C. WORK 300 900 2,70,000 5 Bore Well R.C.C. WORK 35,000 6 Water Tank R.C.C. WORK 10,000 Free Space R.C.C. WORK 200 - TOTAL 1,500 7,77,500(C) Details of Machinery :- 16
  17. 17. Various types of machineries used for producing toothbrushes of differenttypes are described as under : SR. NAME OF QTY. SUPPLIER ELE. AMOUNT NO. MACHINERY CONS UMED H/P 1 Injection 1 M/S. R.H. Windsor 3 6,00,000 Moulding (India) Ltd., U. Road, Machine Industrial Estate, Thanna. Dist. Thanne, Maharashtra 2 Preheating 1 M/S. Engless India 2 10,000 Ovan Machine Tools Ltd., Faratola Road, Calcutta – 53 3 Drilling Bristle 1 M/S. Boolani 2 4,50,000 Machine Engineering Corporation, 402, Prabhadevi Industrial Estate, Savarkar Road, Mumbai - 18 4 Scrap Grinder 1 Kolsite Machine Fabric 3 10,000 Ltd., Veena Desai Road, Mumbai. 5 Multicavity 1 M/S. Antan Zahoransky, 2 45,000 Mould Todtnau, West Germany. Machine 11,15,000 + Installation + 35,000 Charges TOTAL 12 12,50,000(D) Fixed Capital Cost of a Project :- 17
  18. 18. SR. NO. PARTICULARS AMOUNT 1 Land 17,50,000 2 Building 7,77,500 3 Machinery 11,50,000 4 Furniture 42,000 5 Preliminery expense 25,000 TOTAL FIXED COST 37,44,500(E) Working Capital Requirements :- 18
  19. 19. WORKING CAPITAL STATEMENT SR. PARTICULARS DAY/MONTH AMOUNT NO. Current Assets :- 1 Stock of Raw Material 20 days 1,70,000 2 Stock of Finished Goods 1 month 1,00,000 3 Debtors 1 month 66,500 4 Cash & Bank 1 month 50,000 Total Current Assets 3,86,500 Less : Current Liabilities :- 5 G.E.B. Bill 2 months 20,000 6 Creditors 1 month 34,000 7 Other Misc. Exp. 1 month 15,000 Total Current Liabilities 69,000 TOTAL 3,17,500(F) Total Cost of a Project :- SR. NO. PARTICULARS AMOUNT 1 Total Fixed Cost 37,44,500 2 Working Capital 3,17,500 Total Cost of a Project 40,62,000 8. (A) FINANCIAL ARRANGEMENTS 19
  20. 20. SR. PARTICULARS AMOUNT G.S.F.C. OWN SUBSIDY NO. RS. LOAN CAPITAL 1 Land 17,50,000 - 14,25,000 3,25,000 2 Building 7,77,500 2,74,500 3,00,000 2,03,000 3 Machinery 11,50,000 6,66,000 2,00,000 2,84,000 4 Furniture 42,000 42,000 - - 5 Preli. Expenses 25,000 - 25,000 - 6 Working Capital 3,17,500 2,17,500 1,00,000 - TOTAL 42,62,000 12,00,000 20,50,000 8,12,000 As our industrial unit will be located in the backward area, we would get nearabout 20 % subsidy. Long term loan @ 10 % interest will be raised from GujaratState Finance Corporation. Remaining amount of will be own contribution. (B) SOURCES OF FINANCE SR. NO. PARTICULARS AMOUNT 1 Loan from G.S.F.C. (10 %) 12,00,000 2 Subsidy 8,12,000 3 Own contribution 20,50,000 TOTAL 40,62,000 9. PROFITABILITY OF A PROJECT 20
  21. 21. (A) Details of Sales :- SR. PARTICULARS QUANTITY RATE AMOUNT NO. 1 Ordinary Tooth Brush 65,000 12/unit 7,80,000 2 Extra Bristles Brush 1,05,000 15/unit 15,75,000 3 Baby Brush 94,250 10/unit 9,42,500 TOTAL SALES 2,64,250 32,97,500(B) Details of Raw Materials including Packaging :-SR. NO. PARTICULARS QUANTITY RATE AMOUNT 1 Polypropylene 4,000 55 2,20,000 2 Cellulose Acetate Moulding Machine 2,000 70 1,40,000 3 Wire 2,500 50 1,25,000 4 Nylone Bristles 3,000 50 1,50,000 5 Packaging material 2,000 30 60,000 TOTAL 13,500 - 6,95,000(C) Details of Salary & Wages :- 21
  22. 22. SR. NO. PARTICULARS TOTAL NO. MONTHLY YEARLY 1 Manager 3 9,000 3,24,000 2 Peon 2 4,000 96,000 3 Supervisor 1 6,000 72,000 4 Skilled workers 10 2,500 3,00,000 5 Unskilled workers 8 2,000 1,92,000 9,84,000 + 10 % Bonus 98,400 TOTAL 24 23,500 10,82,400(D) Electricity Consumed :- Horse Power  Working Hours per day  Total No. of working days  %utilized capacity  Rate per unit = 13  8  300  0.8  10 = 2,49,600(E) Insurance :- 22
  23. 23. SR. NO. PARTICULARS AMOUNT 1 Insurance 12,500 TOTAL 12,500(F) Repairs & Maintainance :- SR. NO. PARTICULARS YEARLY 1 Repairs 15,000 2 Maintainance 10,000 TOTAL 25,000(G) Interest :- 23
  24. 24. SR. NO. PARTICULARS TOTAL RATE AMOUNT VALUE 1 GSFC Loan 12,00,000 10 % 1,20,000 TOTAL 12,00,000 - 1,20,000(H) Depreciation :- SR. NO. PARTICULARS TOTAL VALUE RATE AMOUNT 1 Building 7,77,500 5% 38,875 2 Machinery 11,50,000 10 % 1,15,000 3 Furniture 42,000 10 % 4,200 TOTAL 18,35,000 1,58,075(I)Administrative & Selling Expenses :- 24
  25. 25. SR. NO. PARTICULARS MONTHLY YEARLY 1 Payment to Accountant 4,000 48,000 2 Printing & Stationary 1,000 12,000 3 Telephone, Postage, etc. 2,000 24,000 4 Other expenses 1,500 18,000 TOTAL 8,500 1,02,000(J) Sales Expenses :- SR. NO. PARTICULARS MONTHLY YEARLY 1 Sales Commission - 1,13,250 2 Salesman’s Salary 6,000 72,000 3 Advertisement Expenses 3,500 42,000 4 Other expenses 2,000 24,000 TOTAL 11,500 2,51,500 10. PROJECT SUMMERY 25
  26. 26. SR. NO. PARTICULART AMOUNT AMOUNT 1 Sales 32,97,500 2 Less :-Raw Materials 6,95,000 3 Wage & Salary 10,82,400 4 Electricity 2,49,600 5 Repairs & Maintainance 25,000 6 Rent, Taxes & Insurance 12,500 7 Depreciation 1,58,075 8 Interest 1,20,000 9 Administrative Expenses 1,02,000 10 Sales Expenses 2,51,250 26,95,825 11 Profit 6,01,675 12 Less :-Income Tax @ 30 % 1,80,500 13 Net Profit after Tax 4,21,175 11. BREAK-EVEN POINT ANALYSIS 26
  27. 27. • FIXED COST :- - Insurance 12,500 -Administrative Expenses 1,02,000 -Depreciation 1,58,075 -Interest 1,20,000 3,92,575 • VARIABLE COST :- -Raw Material 6,95,000 -Electricity 2,49,600 -Wage & Salary 10,82,400 -Repairs & Maintainance 25,000 -Sales Expenses 2,51,250 23,03,250 BEP = Fixed Cost P.V. Ratio P.V. Ratio = Contribution  100 Sales Contribution = Sales – Variable Cost = 32,97,500 – 23,03,250 = 9,94,250 P.V. Ratio = Contribution  100 27
  28. 28. Sales = 9,94,250  100 32,97,500 = 30 % BEP = Fixed Cost P.V. Ratio = 3,92,575 0.30 = 13,08,583 Rs. Our plan estimated that the sales of our product will increase at 4 % duringnext 2 years per annum. While in next three years the sales of our product willincrease at 5 % per annum. While we will try to maintain the variable cost aspossible as in future. 12. FUND FLOW STATEMENT 28
  29. 29. Sources Amount Application AmountOwn capital 20,50,000 Building 5,74,500GSFC Loan 12,00,000 Land 14,25,000 Machinery 8,66,000 Furniture 42,000 Preli. Exp. 25,000 Working Capital 3,17,500 32,50,000 32,50,000 13. PROJECTION FOR 5 YEARS 29
  30. 30. YEAR I II III IV V PARTI.Sales 34,29,400 35,66,576 37,44,905 39,32,150 41,28,758-Vari. Cost 23,72,348 24,43,518 25,41,259 26,42,910 27,48,626Contribution 10,57,052 11,23,058 12,03,646 12,89,240 13,80,132-Fixed Cost 4,67,575 4,82,575 4,97,575 5,17,575 5,67,575Profit 5,89,477 6,40,483 7,06,071 7,71,665 8,12,557PV Ratio 31% 31% 32% 33% 33%BEP(Rs.) 15,08,306 15,56,694 15,54,922 15,68,409 17,19,924 14. ADVANCEMENT & FUTURE PROSPECTS 30
  31. 31. At present the application of toothpaste or dental cream is always with aid ofbrush. Use of brush is always recommended by dental experts as a more effectiveway of ensuring proper dental care. Tooth brush is being used by the humanpopulation world over. So there is a great demand of toothbrush. Initially our organization’s production capacity is 75 % by which we will try toincrease our production capacity. In future, we will also try to increase our sales at 5% to 7 % per annum & attempt to decrease our variable cost. Our future plan is to attract the middle class people who want good qualityproducts at a reasonable cost. We will make our best effort to improve the quality ofthe product to satisfy consumer & to increase the marketing area effectively. 15. CONCLUSION 31
  32. 32. As the importance of preparing “BUSINESS PLAN” to guide aboutestablishing the industrial unit, Students of management are required to prepare thisreport as a part of syllabus in M.B.A. Students also get knowledge about theprocedure required in establishing industrial unit. This type of work i.e. project work plays very vital role for making thestudents aware about it & they get practical knowledge in this type of field work. SoI have made good attempt to prepare this BUSINESS PLAN. I have also collected allthe informations from various sources which are required to BUSINESS PLAN. The project work is essential for the career of students. Students getencouragement by this precious work. They get guidance from all the personsconcerned in this type of work & get the views of professors to do the project work.So, I hope that the informations provided in this report to establish an industrial unitare satisfactory & I will be encouraged to work more efficiently in this type of fieldwork. 32

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