Prepared By DADHANIYA VISHAL B. Class M.B.A. Academic Year 2009 - 2011 Roll No. 17 InstituteN.R.VEKARIA INSTITUTE OF BUSINESS MANAGEMEMNT STUDIES, JUNAGADH
Submitted ToMr. Dr.RAJESH PATEL
DECLARATIONI undersigned DADHANIYA VISHAL B. a student of M.B.A.hereby declare that the project work presented in this report is myown work and the report has been prepared by my own efforts.Date:Place: Signature ________________ (DADHANIYA VISHAL B.)
PREFACEFor Socio economic growth and balanced structure developmentSSI are very important tool. It is considered highly for the creationof employment opportunities as well as development ofentrepreneur skills. The better use of scarce financial resources andappropriate technology is also ensuring by the SSI.In the growth of the country the SSI gives vital contribution.Therefore it is essential to understand management and working ofSSI as a student of management.So I have prepared this project report on one of the SSI productthat is computer furniture.
ACKNOWLEDGEMENTWe can not do a single thing without contributor help of otherpeople. Study is always here behind any success.In the preparation of this report may people have contribute a lotfirst of all I would like to thankful to Dr. Rajesh Patel than to myparents secondly to my friend who is always here with me ingathering info.Date:Place: Signature ________________
(DADHANIYA VISHAL B.)
INDEXSr. ParticularNo. 1. Project At a Glance 2. Bio-data of Partners 3. Introduction 4. Location Justification 5. Raw-Material 6. Address of Machinery & Raw-material Suppliers 7. Product Potential 8. Market Potential 9. Production Process 1 Production Capacity 0. 1 Financial Details 1. 1 Sources of Finance 2. 1 Project Summary 3. 1 Cash Flow Statement 4. 1 Fund Flow Statement 5. 1 Conclusion 6.
INTRODUCTION Whether you work from home full time or just need somewhereto put your computer, our great range of office furniture has everythingyou need to make the most of your space. From fully kitted out offices tospace-saving desk solutions, ergonomic chairs to filing cabinets, ourproducts come in a variety of styles to suit any budget. It all comes with ano-nonsense 30-day money back guarantee, so you can buy withconfidence. If you want stylish office furniture for everyday familyliving, our Easy Living collection is for you. Hard working and goodlooking, the range is available in a number of materials and finishes. Toreally make a style statement, choose one of the ultra-modern piecesfrom our Contemporary collection. We’ve combined the boldest designswith the latest finishes that will add the ‘wow’ factor to any space.
PROJECT AT A GLANCEName of the unit : “Unique Computer Furniture”Address of unit : 182 / K1- M. Road, Opp. Poly Vastra Bhavan, Aji GIDC – 3, RajkotTypes of the unit : small scale industryForm of organization : Partnership firmRegistered office no. : applied forPartner’s Name : DADHANIYA VISHAL B Araniya Ashish J.Brand Name : “Unique”Product : Computer Furniture
INTRODUCTIONSmall scale industry is quickly gearing up to meet emerging challengesin the global economy through content innovation and adoption ofcutting edge technology to provide supervisor customer solution.The definition of small scale industry varies from one country toanother.Generally a SSI is presently defined as “a unit engaged inmanufacturing, servicing, repairing, processing preservation of goodshaving investment in plant & machinery at an original cost ofexceeding 1 crore.The small scale industry sector as an important segment of the Indianeconomy accounts for:
1. 95% present of the industrial unit 2. 40% of output of the manufacturing sector 3. 35% of the total exports & provides employment to around 18 millions persons.More recently, enhancing SSI has been viewed as an effective way offostering the private sectors, contribution to both the growth and theequity objective of the development.The SSI sector has been receiving special attention from the policymakers in addressing its requirements be it credit, marketing,technology and entrepreneurship development, fiscal on infrastructuralsupport.
LOCATION JUSTIFICATIONLocation is also an important factor determining the ultimate success orfailure of SSI on it may depend on small industries ability to obtain anadequate and regular supply of its raw materials at a minimum cost tomaintain a sufficient labor force and to serve satisfactorily itscustomers.The important factors which should be taken into account in theselection of are site are …Availability Of Raw Material:Aji GIDC, it is a place from where firm can easily obtain raw materialeasily at a low transportation cost. Nearness to the sources of rawmaterial reduce the price.
Availability Of Skilled And Unskilled Labor:Rajkot is near rather we can say that firm’s location is in the Rajkot. Sofirm can easily get skilled workers and the firm has villages near totheir location so they can easily get the unskilled labor at a lower cost.Nearness To The Sources Of Motive Power:Govt. is providing enough power to the firms which are located in Ajiso firm has not any problem about the motive power.Nearness To The Market:Firm has enough market around their territory so the firm can easilyfind the customers. Due to nearness to the market transportation costwill reduce so ultimately price will reduce. So the firm can earn moreprofit.Availability Of Transport Facility:
Private or government transportation are available in Aji GIDC so firmhas not any problem obtain raw material for giving the final productinto market.Suitability of Climate:There are no much residential area near to the location of industrywhole area of Aji GIDC is utilize for the purpose of industrial area. ISOthe location of unique furniture is suitable to the climate.Portrait of productWithin a carved span of time, computers have carved out a niche in thehistory of mankind and changed the entire gamut of human life at anoverwhelming. Be it business academic, defense strategy, budgetingresearch, engineering, medicine, space exploration, communication,travel and hospitality, utilities or designing, computers have establishedthemselves as an indispensable part and so also the computer furniture.Some commonly used computer furniture are computer tables,computer cum printer tables, printer tables computer chairs with orwithout arms, computer chairs with or without coaster wheel base etc.
RAW MATERIALRaw material is the basic necessity of all the manufacturing company.It is the heart of the manufacturing company.The basic and important raw materials for computer furniture are …1) Ball bearing channel is 15” long & 2 mm thick2) Pre laminated particle board 18 mm3) Plastic fittings, floor adjuster screws, PVC beading4) PUF arm set5) Tapestry / fabric6) MS strip 50 x 5 mm size, MS round 1.5 size etc7) MS pedestal arms of assorted size8) Twin roller type ABS coaster set9) Plywood seat10) PVC beading shoes for chairs
11) Powder coating compound Raw Material ( in working capital ) Sr. Particulars No. Rate Amount (Rs.) (Rs.) 1 MS square and rectangular 46 MT 22000 10,12,000 section of assorted size / MT 2 Ball bearing channel 15” long 4600 15 69,000 and 2mm thick set / set 3 Both side pre-laminated particle 6000 600 36,00,000 board 18 mm thick sq. mt sq. mt. 4 Plastic fittings, floor adjuster L. S. 2,25,000 screw, PVC beadings 5 PUF arm set: (set) (chair) 1) For general chair 7000 200 14,00,000 2) For executive chair 1500 350 5,25,000 6 Tapestry / fabric: (Mtr) (Mtr) 1) For general type chair 10,500 100 10,50,000 2) For executive chair 3750 150 5,62,500 7 MS strip 50 x 5 mm size, MS 81 15500 12,55,500 round 1.5 size etc. MT MT 8 MS pedestal arms of assorted 42.5 2500 10,62,500 sizes Set MT
ADDRESS OF MACHINERY & RAW MATERIAL SUPPLIERS: 1. M/s. Chandradeep Industries SCO 32, G. S. Complex, 1st floor, Sangeet Cinema Road, Ludhiana 2. M/s. Akal Industries 240, St. No. 3, Darmesh Nagar, Nr. Campa Cola Chowk, Ludhiana 3. M/s. A. P. Enterprise 40, New Kapur Nagar, Sultanwind Road, Amritsar – 143 006 Ph.: 2234099 4. M/s. Nightangle Products
Bachittan Nagar, Nr. GNE, College, Gill Road, Ludhiana5. M/s. Welding & Tools Corporation GT Road, Miller Ganj, Nr. Overbridge, Ludhiana6. M/s. Kalgidhar Foundry & Agro Ind. GT Road, Opp. Power House, Mandi Gobinagar7. M/s. Ajit Electro. Sales 9, Gurudwara Market, Opp. Manager Cinema, GT Road, Ludhiana8. M/s. A. P. Engineering Works 42, New Kapoor Nagar, Sultanwind Road, Amritsar 143 006.9. M/s. Guru Nanak Fabricators
3201, St. No. 2, New Janta Nagar,Opp. Arora Palace, Ludhiana 141 003.
PRODUCT POTENTIALWithin a covered span of time, computers have covered out a niche inthe history of mankind and changed the entire gamut of human lift at anoverwhelming ace. Be it business academics, defense strategy,budgeting research engineering, medicine, space exploration,communication travel and hospitality, utilities or designing, computershave established themselves as an indispensable part and so also thecomputer furniture. Some commonly used computer furniture arecomputer tables, computer cum printer, tables printer tables, computerchairs with or without arms, computer chairs with or without coasterwheel base etc.
MARKET POTENTIALThe market demand for computer furniture is increasing day by daywith the increasing in use of the computers. Computer furniture has gotdomestic as well export market. Long settling hours on computers hasnecessitated the use of computer furniture such as table and chairhaving proper dimensions and specifications .computer tables aredesigned tin such a way so as to accommodate monitor, CPU, keyboardand other peripherals etc. with the optimum utilization of horizontaland vertical space. Care is also given to provide sufficient leg space,free hand movement for operating mouse etc. Care is also taken indesigning and manufacturing computer chairs to suit the computertable. Long sitting hours on computer clubbed with improper spinalsupport on chair have become the major cause for backache to manycomputer users. Computer furniture manufacturers are bringing outinnovative changes to cope with this problem. Computer furniture is
being mainly used in offices, computer training institutes, laboratories,schools, colleges and homes. PRODUCTION PROCESS Computer Tables:The computer table shall be fabricated in knock down design for easyassembly and transportation. The base frame shall be made of hallowrectangular mild steel section of 50 mm X 25 mm X 1.2 mm thicknessby cutting in desired size and welding the sections. The open edges ofbase frames are protected by PVC cover level adjusters are mountedsuitably at the bottom edge of base frame.Printer TablePrinter table dose not have any drawer/shelf etc whereas the computertable shall have a suitable drawer for key board made of 18 mm of oneside pre-laminated medium density board below the drawer, theprovision is made for siding board of 9 mm thickness and width 300
mm which can be taken out on either side upto approximate 225 mmfor placing the mouse and pad.Computer cum Printer:Computer cum printer table shall also have a key board drawer shelfsiding board (for keeping the mouse and pad) and a lockable drawer.Two shelves are also made for keeping CPU UPS and stationery etc.The side support shall be made of 50 X 6 mm MS flat welded to mainframe. The arms shall be supported on the side frame.Computer Chairs:The computer chairs shall be revolving type fabricated in knock downdesign for easy assembly and transportation of 12 mm thick ply,pressed formed and ergonomically shaped seat and back which areeasily available in the market in standard sizes. These seat and backrestshall be covered with mechanically formed PUF 50 mm thick withunderneath coirised rubber sheet of 12 mm thick.
PRODUCTION CAPACITY Computer TablesComputer tables over all size : 900 x 60 x 750 mm - 1800 nosComputer cum printer table over all size : 1200 x 700 x 750 mm – 1000 nos.Printer table cover all size : 750 x 700 x 75 mm – 1800 nos. Computer ChairsComputer chairs without arms and adjustable seat having size : 725 x 725 x 950 – 1050 mm – 4000 nos.Computer chairs with arms and adjustable seat height size : 725 x 725 x 950 – 1050 mm – 3000 nos.Executive computer chairs with arms and adjustable seat height ofsize :
725 x 725 x 1100 – 1200 mm – 1500 nos. Motive Power:25 HP Energy Conservation:Shunt capacitors should be provided to control power factor. Aselectricity is used as a supply of energy in the unit hance, for betterresults efficient motor should be used .tube lights, fans etc. should bekept off as and when not required. Pollution Control:Noise pollution created by machines should be controlled within limits.
FINANCIAL DETAILS FIXED CAPITAL DETAILSLand and building:Description Amount600 sq. mtrs. Of covered area @ Rs. 20 per sq. mtrs. Per 12000month on rent (600 x 10)Machinery and equipments:Sr. Description Qty AmountI Multi purpose wood working machine 1 45,000
II Hand operated screw press Nos. Arc welding 1 30,000 machine 300 AMP 18,000 Gas welding set 10,000 Pipe shearing Machine 4” size 20,000 Double ended bench grinder 6” 8,000 Flexible shaft grinder 6” wheel size 8,000 Bench drilling machine ¾ “ Cap. With motor 17,000 Portable drilling machine 7,000 Powder coating equipment 2,00,000 Air compressor 60,000 Paint baking oven temp 300 C , 8’ x 6 ‘ size 1,00,000 Phosphating plant 50,000 Total 5,73,000 Electrification and installation @ 10% of the 57,300 cost of machinery Tools jigs fixtures etc. 10,000 Offices, furniture etc. 75,000 Total 7,15,300III Pre operative exp. 30,000 Total fixed capital (II + III) 7,45,300
Utilities: Description Amount Electricity 13,500 Water 1,000 Total 14,500 Electricity Water
Other Contingent Expenses:Description AmountRent 12,000Postage stationary 1,700Telephone 2,000Transportation charges 7,000Advertisement and publicity 3,500Insurance 1,000Traveling exp. 4,000Misc. expenses 5,000 Total 36,200 Misc. Travel Insurance Advertise Transport Phone Postage Rent 0 2000 4000 6000 8000 10000 12000Total Recurring Exp:Salaries 47,520Raw material 19,26,000Utilities 15,000
Other contingent exp 36,200Total 20,24,720Total working capital:2024720 x 3 months= Rs. 6074160Total Capital Investment: Fixed capital 745300 Working capital ( 3 months) 6074160 Total 6819460
Fix e d Wo rking
SOURCES OF FINANCEProject Cost:Sr. Particular Total Govt. Own Contribution Contribution For Fixed Assets1 Machinery & 5,73,000 3,43,800 2,29,200 Equipments2 Office furniture 75,000 45,000 30,0003 Fixtures 10,000 6,000 4,0004 Preoperative Exp. 30,000 18,000 12,000 Total 6,88,000 4,12,800 2,75,200 For Working Capital 50% 50% Working Capital 60,74,160 36,44,496 2,42,966 (3 months) 30,37,080 30,37,080 Total Project Cost 67,62,160 40,57,296 27,04,864Means of finance: Particular Amount For fixed assets Term loan 4,12,800 Own contribution 1,55,200
Relatives contribution 1,20,000 For working capitalTerm loan 30,37,080Own contribution 20,37,080Other contribution 10,00,000
Cost of Production (Per Annum): Particular Amount Total recurring cost 2,42,96,640 Depreciation on machines @ 10% 57,300 Depreciation on tools & fixtures etc @ 25% 2,500 Depreciation on office furniture equipments @ 20% 15,000 Interest on capital investment @ 16% 10,91,113 Interest on Borrowed Loan On Fixed Capital 49,536 On Working Capital 3,64,449 4,13,985 Total 2,58,76,538
Turn Over:1 Computer Table 1700 2250 38.25 Size 900 x 600 x 700 m2 Computer cum printer table 1000 2600 26.00 Size 1200 x 700 x 750 m3 Printer table 1800 1800 32.40 Size 750 x 700 x 750 mm4 Computer chairs without arms 3800 1900 72.20 Size 725 x 725 x 950 - 1050 mm5 Computer chairs with arms 3000 2100 63.00 Size 725 x 725 x 950 – 1050 mm6 Executive computer chair 1500 3000 4500 Size 725 x 725 x 1100 – 1200 mm Total 276.85
Net Profit:= Turnover – cost of Production= 276.85 – 258.76= 18.09 lacksNet Profit Ratio: Net profit per year x 100 Turn over per year 18.09 x 100 276.85 6.53%Rate of Return on Investment: Net profit per year x 100 Total investment 18.09 x 100 68.19 26.53%
Break Even Point: Particular Amount Depreciation on machinery, furniture etc. 74,800 Rent of building 1,44,000 Interest on total investment 10,91,113 40% of salary & wages 2,28,096 40% of other contingent 1,13,360 Total 16,61,369Break Even Point: Fixed Cost x 100 Fixed Cost + Profit 16,61,369 x 100 16,61,369 + 18,09,000 16,61,369 x 100 3470369 47.87 %
CONCLUSIONTo end up the decision, since the starting of the project with theselection of the “Unique Computer Furniture” for a new segment ofconsumer with the greater potentially.This is my pleasure to put this report before the university launchingthe “Computer Furniture” As s promoter of this unit, I have made allthe required efforts for the successful launching of all products, I hopethat the will be success in the market and specially my brand,“Unique”. The main aim of mine for launching this kind of product isjust to associate the society by providing best quality product.Govt. should support these kinds of small scale units to serve the publicwith qualitative items. I also want to help in generation of employmentopportunities and to raise standard of living.
At least I am again very thankful to all of the concerned people whohelped me in preparing this report. This is also true for me as I thoughtmy report could express my thought researches for unique computerfurniture. It was a great experience that I might want to deal in future.That’s all it will be great opportunity for every student.