0
Managerial Economics
Business Model
for Jute Products
Presented by:
61 Anshari Naved Abdul Vahid
67 Dhuri Swapnil Manohar
...
Objectives:
• For creating pollution free environment as jute is eco-friendly
products.
• Making low cost carry bags and f...
Introduction:
• Jute is a natural fiber popularly known as ‘The golden fiber’.
• One of the cheapest and the strongest of ...
Our Product Range:
Jute Bags
Printed & Decorated Jute Shopping Bags
Designer Laptop Bags
Jute Folders
Men’s Handbags
Market and Demand Aspects:
• Every responsible citizen considering the black future of ours next
generation shall stop usi...
Government Bodies:
• Jute Manufacturer Development Council (JMDC)
• National Centre for Jute Diversification (NCJD)
• Nati...
Alternates and Substitutes:
• Paper Bags:
- Manufacturing process of paper bags results in plenty of leftover waste.
- Env...
Manufacturing Process:
Laminated & Non-Laminated Jute Facbrics
Printing
Stitching and Finishing
Dispatching Market for Sal...
Presumptions:
• Unit will operate 9 hours daily and 25 days in month.
• Capacity utilization will be 75% which will remain...
Financial Aspects:
Suggested Location
Dahisar (East)
Mira Road (East)
Production Programme for a year
Sr. No. Items Qty (N...
Financial Aspects:
Fixed Capital:
1. Land & Building
Workspace 750 sq. mtrs on long term monthly rental basis Rs.20,000/-
...
Financial Aspects:
Fixed Capital (Contd.)
3. Furniture & Fixtures
Sr. No. Items Qty (Nos) Rate (Rs.) Total Amount
1 Cuttin...
Financial Aspects:
Working Capital per month
1. Salary & Wages Expenses
Sr. No. Particulars Employee Remunarration Total A...
Financial Aspects
Working Capital per month
2. Raw Material Consumption
No. Items Qty Rate (Rs.) Total Amount Annually
1 C...
Financial Aspects:
Working Capital per month
3. Monthly other Expenses
Sr. No. Items Amount Annually
1 Rent 20,000 240,000...
Financial Aspects:
Norms of Working Capital
Sr. No Description Norms Margin Total Amount Margin Money
1 Raw Materials 1 mo...
Financial Aspects:
Total Capital Investment
Means of Finance
Particulars Amount
Total Fixed Capital 112,400
Total Working ...
Financial Aspects:
Profitability Analysis
Sr. No. Particulars Value (Rs)
a Sales Revenue 6,180,000
b Cost of Production  
...
Financial Aspects:
Break Even Point Analysis
(75% Capacity Utilisation)
Sr. No. Particulars Value (Rs)
a Variable Cost:  
...
Marketing Strategies:
• Word of Mouth:
• Comprehensive Website:
• Social Marketing:
• Direct Marketing:
• Major Festivals:...
Future Scope:
• We will be focusing on more on product segmentation like introducing
new products wallets, water resistanc...
Conclusion:
• These reusable 100% natural bags are biodegradable, ethically sourced,
eco friendly, long lasting. They are ...
Thank
You
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Business Model for Jute Products

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Business Model for Jute bags manufacturing

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Transcript of "Business Model for Jute Products"

  1. 1. Managerial Economics Business Model for Jute Products Presented by: 61 Anshari Naved Abdul Vahid 67 Dhuri Swapnil Manohar 74 Jain Ashish Ganpathlal 77 Kadam Mandar Prabhakar 82 Khedekar Pooja Shravan
  2. 2. Objectives: • For creating pollution free environment as jute is eco-friendly products. • Making low cost carry bags and fashionable jute products. • To make jute products as a part of our daily living. • Creating awareness about jute products. • Last but not the least to earn profit.
  3. 3. Introduction: • Jute is a natural fiber popularly known as ‘The golden fiber’. • One of the cheapest and the strongest of all natural fiber. • Jute is a bio-degradable eco-friendly item. • India, Bangladesh, China and Thailand are the leading producers of Jute. • India is the largest producer of jute goods in the world, while Bangladesh is the largest cultivator of raw jute.
  4. 4. Our Product Range: Jute Bags Printed & Decorated Jute Shopping Bags Designer Laptop Bags Jute Folders Men’s Handbags
  5. 5. Market and Demand Aspects: • Every responsible citizen considering the black future of ours next generation shall stop using plastic carrier bags used for shopping as much as possible. • Plastic bags in general take anywhere from 20 to 1000 years to breakdown in the environment. The natural alternative is jute bag. • Decorated jute bags and shopping bags are very much in demand both for domestic and international market. • With the increase of population the scope of trade and industry is also increasing. As the bags are an essential commodity for human, so the demand of the product is growing day by day. • The demands of the product remain consistent through out the year. So, it is presumed that there is a good scope for starting of such type of industry with a huge export potential.
  6. 6. Government Bodies: • Jute Manufacturer Development Council (JMDC) • National Centre for Jute Diversification (NCJD) • National Jute Board (NJB)
  7. 7. Alternates and Substitutes: • Paper Bags: - Manufacturing process of paper bags results in plenty of leftover waste. - Environmental Damage - They are meant for short term usage. • Cotton Bags: - They are costly as compared to jute. - Scarce raw material • Plastics or Polyethene Bags:
  8. 8. Manufacturing Process: Laminated & Non-Laminated Jute Facbrics Printing Stitching and Finishing Dispatching Market for Sale Design & Size Cutting Checking & Packing
  9. 9. Presumptions: • Unit will operate 9 hours daily and 25 days in month. • Capacity utilization will be 75% which will remain constant. • The salary and wages of staff has been taken as per present market rate. • Cost of Assets, Raw Materials and Selling price of Finished product are those generally obtained at the time of preparation of Business Model. • The rate of interest on Bank Loan may vary from time to time. • Since the project is small the financial calculation has been done for one year only.
  10. 10. Financial Aspects: Suggested Location Dahisar (East) Mira Road (East) Production Programme for a year Sr. No. Items Qty (Nos) Rate (Rs.) Total Amount 1 Jute Bags 75,000 35 2,625,000 2 Printed & Decorated Jute Shopping Bags 30,000 65 1,950,000 3 Designer Laptop Bags 2,000 300 600,000 4 Jute Folders 7,500 30 225,000 5 Mens Handbags 3,000 260 780,000   Total     6,180,000
  11. 11. Financial Aspects: Fixed Capital: 1. Land & Building Workspace 750 sq. mtrs on long term monthly rental basis Rs.20,000/- Sr. No. Items Qty (Nos) Rate (Rs.) Total Amount 1 Industrial Sewing Machines 31K 5 7,500 37,500 2 Screen of Diff. Designs 15 350 5,250 3 Rubber Wiper 10 125 1,250 4 Dye Paste Stirrer 4 3,600 14,400 5 Cottage Steamer 1 17,500 17,500 6 Water Drum 2 1,500 3,000 7 Scissors, Measuring Tapes and other Equipments L.S   3,800   Total     82,700 2. Machinery / Equipment
  12. 12. Financial Aspects: Fixed Capital (Contd.) 3. Furniture & Fixtures Sr. No. Items Qty (Nos) Rate (Rs.) Total Amount 1 Cutting Table 1 1,700 1,700 2 Wooden Woking Table 2 2,000 4,000 3 Chair 5 500 2,500 4 Almirah 2 4,000 8,000 5 Reck 1 3,500 3,500 6 Electrical Fittings     4,500 7 Misc. Items (Stools) L.S   5,500   Total     29,700 Total Fixed Capital Particulars Amount Land & Building Nil Machinery / Equipment 82,700 Furniture & Fixtures 29,700 Total 112,400
  13. 13. Financial Aspects: Working Capital per month 1. Salary & Wages Expenses Sr. No. Particulars Employee Remunarration Total Amount Annually 1 Manager Cum-Supervisor (Promotor) 1 14,000 14,000 168,000 2 Accountant 1 10,000 10,000 120,000 4 Master Tailor and Cutter 1 8,500 8,500 102,000 5 Tailor 4 7,500 30,000 360,000 6 Skilled Printer 1 6,500 6,500 78,000 7 Unskilled workers / Helpers 2 4,500 9,000 108,000 8 Marketing and Salesmen 3 5,500 16,500 198,000 9 Peon / Chowkidar 1 3,500 3,500 42,000   Total 14   98,000 1,176,000
  14. 14. Financial Aspects Working Capital per month 2. Raw Material Consumption No. Items Qty Rate (Rs.) Total Amount Annually 1 Cloth for Shopping Bags 2200m 28 61,600 739,200 2 Laptop Bags 800m 35 28,000 336,000 3 Jute Floder 550m 18 9,900 118,800 4 Mens Handbags 1100m 30 33,000 396,000 5 Jute Fabric 9500 bags 13 123,500 1,482,000 6 Dye Stuff 15 kg 450 6,750 81,000 7 Chemicals and Auxiliaries L.S   3,500 42,000 8 Printing Gum 15 kg 50 750 9,000 9 PVC buckle or Bamboo Stick 1200 pcs. 1.50 1,800 21,600 10 Sewing Thread, Needle, Label L.S   4,500 54,000 11 Buckles, Hook, Runner, Chain, Lining etc.. L.S   3,500 42,000 12 Transportation & Freight     8,000 96,000   Total     284,800 3,417,600
  15. 15. Financial Aspects: Working Capital per month 3. Monthly other Expenses Sr. No. Items Amount Annually 1 Rent 20,000 240,000 2 Electricity 11,500 138,000 3 Utilities 2,500 30,000 4 Office & Administrative Expenses 4,500 54,000 5 Travelling and Transportation 2,200 26,400 6 Repair and Maintainence 1,200 14,400 7 Sales Promotion 15,000 180,000 8 Misc. Expenses 2,500 30,000   Total 59,400 712,800
  16. 16. Financial Aspects: Norms of Working Capital Sr. No Description Norms Margin Total Amount Margin Money 1 Raw Materials 1 month 25% 284,800 71,200 2 Wages & Salaries 1 month 100% 98,000 98,000 3 Utility 1 month 100% 2,500 2,500   Total     385,300 171,700 Total Working Capital per month Particulars Amount Monthly Other Expenses 59,400 Margin Money for Working Capital 171,700 Total 231,100
  17. 17. Financial Aspects: Total Capital Investment Means of Finance Particulars Amount Total Fixed Capital 112,400 Total Working Capital per month 231,100 Total 343,500 Sr. No. Particulars Total Amount 1 Promoter's Contribution (35%) 120,225 2 NCJD's Interest Free Loan (20%) 68,700 3 Bank Loan (45%) 154,575   Total 343,500
  18. 18. Financial Aspects: Profitability Analysis Sr. No. Particulars Value (Rs) a Sales Revenue 6,180,000 b Cost of Production     Raw Material 3,417,600   Utilities 30,000   Salaries & Wages 1,176,000   Rent 240,000   Repairs & Maintainence 14,400   Adminsitrative Overheads 54,000   Selling and Distribution Expenses 180,000   Electricity 138,000   Depreciation @ 10% 11,240   Interest on Term Loan @ 12.50% 19,322   Interest on Proprietor @ 10% 12,023   Total (b) 5,292,584 c Operating Profit (a-b) 887,416 d % of Profit on Sales 14.36 e % of Profit on Investment 258.35
  19. 19. Financial Aspects: Break Even Point Analysis (75% Capacity Utilisation) Sr. No. Particulars Value (Rs) a Variable Cost:     Raw Materials 3,417,600   Utilities 30,000   Selling and Distribution Expenses 180,000   Total (a) 3,627,600 b Semi-Variable and Fixed Cost     Salaries & Wages 1,176,000   Repairs & Maintainence 54,000   Adminsitrative Overheads 54,000   Rent 240,000   Selling and Distribution Expenses 180,000   Depreciation @ 10% 11,240   Interest on Term Loan @ 12.50% 19,322   Interest on Proprietor @ 10% 12,023   Total (b) 1,746,584 c Sales Realisation 6,180,000 d Contribution (c-a) 2,552,400 e B.E.P = b/d*75 47.90
  20. 20. Marketing Strategies: • Word of Mouth: • Comprehensive Website: • Social Marketing: • Direct Marketing: • Major Festivals: • Online Shopping Sites: • NGO Tie-ups: • Local Tie-ups: • Corporate Gifting: • Conferences and Seminars:
  21. 21. Future Scope: • We will be focusing on more on product segmentation like introducing new products wallets, water resistance bags, designer’s ladies handbags etc. • Expansion of our business by introducing new outlets at prime locations across the country which will result in creating more employment opportunities. • To focus more on the Marketing: Promoting our eco-friendly products through newspapers, hoarding, Radio etc. Ad Campaign. Focusing more on tie-ups like Award ceremony’s, Standard Chartered Mumbai Marathon, DNA Half Marathon other the major event happens in Mumbai.
  22. 22. Conclusion: • These reusable 100% natural bags are biodegradable, ethically sourced, eco friendly, long lasting. They are a sustainable alternative to plastic and most other Green or Eco-friendly type bags available in the market. • As well as their stylish looks jute bags carry a positive environmental message about your brand when printed with your logo. • Go plastic bag free and make a difference to our planet. • Jute is – Natural Fibre – Biodegradable – Sustainable – Stylish – Reusable
  23. 23. Thank You
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