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Besan jay Document Transcript

  • 1. Business plan OnBESHA N PREPARED BY KUMBHANI JAYDIP M. M.B.A. Roll No: - 108GUIDED BY :- DR. RAJESH PATEL NAME OF INSTITUTE N.R.V.I.B.M.S. M.B.A. COLLEGE, BILKHA ROAD, JUNAGADH – 362 001. 1
  • 2. Assuming that the student him self is an entrepreneur thesyllabus of M.B.A. includes “preparation of business plan” It is havingpractical importance and it helps in launching a product. Product project report is high light of location justification,capital requirement, technology, inception, and expansion of business andmost important. i.e. Social responsibility of business. The Vital Role of business plan is in determining profitabilityof a product and it is measurement. “How for the planning is successful.” I have prepared by my business plan on “mini cementindustry” 2
  • 3. Successful accomplishment of any work requires cooperation, helpand guidance for many people. I had a wonderful of opportunity to make aBusiness Plan on Beshan as a part of my practical training in M.B.A. This report would out have been possible without the help of manypeople alone I would like to acknowledge and thank for their kind co-operation. First of all I thank N.R.V.I.B.M.S.- Junagadh for giving meopportunity of doing Business Plan. I specially thank DR. RAJESH PATEL for giving me importantguidance for making the project informative and well constructed, we hadspent his precious time for my Business Plan.Date :-Place :- Junagadh Yours faithfully, KUMBHANI JAYDIP M. 3
  • 4.  Project at a Glance. Detail about promoters. Location. Infrastructure, facilities Market Analysis. Inspection And Quality Control. Production Process. Details Of Land & Building. Details of Plant & Machinery Details Of Raw Materials. Personnel. Production Capacity. Financial Details of Project. Ratio Analysis. Break Even Point. 4
  • 5.  Suppliers.  Name of unit :~ PC Private Limited.  Name of Products :~ Beshan  Address of Communication :~ IndustrialArea,G.I.D.C. (Resi. Office) 150/165, metoda, Rajkot.  Types of Unit :~ Partnership Firm.  Size of Unit :~ Small Scale Industry.  S.S.I. Reg. No. :~ Application Made for  Location Of Unit :~ IndustrialArea,G.I.D.C. 150/165,Metoda,Rajkot.  Partners :~ 1)KUMBHANI JAYDIP M. 2)KUMBHANI VAIBHAV M.  No. of Shifts :~ 1 Shifts. 5
  • 6. Promoter (1) (2) Name KUMBHANI JAYDIP KUMBHANI M. VAIBHAV M. Address “Shree Krishna Kunj” “Purusharth” 21/28, New Jagnath Aaradhana Socity, Plot, Rajkot – 360 001. Rajkot – 360 001. Age 21 years 27 year Degree M.B.A. M.B.A.Nature of Work Production Department Marketing& Responsibility Department Contribution 50%. 50%. Experience Fresh Fresh 6
  • 7. The major activities in the implementation of theproject have been listed and the average time for implementation isestimated at 11 month. SR NO PARTICULARS MONTH 1. Preparation of Report ½ month 2. Registration and other formalities 2 month 3. Sanction of loan by financial institutions 3 month 4. Plant and Machinery  Placement of orders 1 month  Procurement 1 month  Power Connection 1 month  Installation of Machine 1 month 5. Procurement of Raw Materials 1 month 6. Recruitment of technical personnel 1 month 7
  • 8. The unit is located at such area where it can avail theconcerned business easily. Moreover exact location is place where there usminimum of cost & maximum profit can be achieved. Before setting a unit, entrepreneur has to kept in mind thevarious location factors such as availability of land, power, water suchinfrastructure facilities availability of labour etc.., It is quite known that metoda G.I.D.C. (Rajkot) is anindustrial area & we can obtain any facility as a convenient way.Surrounding area is containing a big market for the Beshan. There aremany other facilities of factors, which inspired us to choose proposallocation. 8
  • 9.  LABOURS :~ Generally all types of main power are available have atreasonable cost. As for as this manufacturing firm is concerned withsemiskilled labour and there few also get labour in adequate number andat cheap rate. RAW-MATERIALS :~ There is more transportation facility because of center pointof Saurashtra. From this we can easily get the raw materials like gram ,gram-dal , bags etc., We purchase raw materials from Delhi, Aakola andalso from Rajkot. TRANSOPRTATION & COMMUNICATION :~ As we have seen that Rajkot is a center point of Saurashtra.So transportation facilities are available in Rajkot. It is situated onNational High Way. So, road transport is easily available. 9
  • 10.  INDUSTRIAL ATMOSPHERE :~ There is better industrial atmosphere in metoda near Rajkotas so many other industrial. Like Textile, Steel, Cotton, chemical, oilIndustrial etc., are located there. Hence we could easily develop jourindustry through inspiration of other industries. FINANCIAL FACILITIES :~ There are so many banks and individual many land fromwhich our financial requirement is satisfied. OTHER FACTORS :~ There are so many other factors, like electric connection,maintenance of machine, technical knowledge, which are responsible forthe set up of our industry in this area. Thus, location proposed by us in suitable in every aspects. 10
  • 11. Infrastructure, facilities provided by G.I.D.C. The industrial sheds of G.I.D.C. are fully equipped with facilities like electricity, telephone, water, transportation, etc Skilled & semi-skilled workers are available from Rajkot & surrounding areas. From marketing viewpoint, a good demand exists for own product. Rajkot, being a big city, all the means of transportation is available. Rajkot is developing commercially. Small & Medium scale industries are coming up in Shapar, Varaval, Morbi & Bamanbor. Hence for these industries also, demand for Beshan still exists. 11
  • 12. Industrial progress is the backbone of nation’s economy.Industrial Evolution is a natural process over a number of years. A Market consists of all the potential customers sharing aparticular need or want who might be willing & able to engage inexchange to satisfy that need or want. Food Industry has experienced tremendous growth over last 2decades in light of growing business, increased expansion of industrialundertakings. The market potential for Beshan should be evaluated in lightof in Increase demand of farshan. Every Age of person wants to eat newvariety of farshan, Which was made by the Beshan. Items made by theBeshan are almost used in every function of this side of the country. So,this business has the big future ahead of its. 12
  • 13. To survive in a competitive business environmentorganization makes all possible efforts to produce the products, whichsatisfy their customers to the maximum extent. “Quality cannot reliability. Quality is consumers is the goldencode the existence of the product”. In a product like Beshan, from raw material to finish goodsinspection & quality control is required. Simple devices & methods willbe used to check the raw material proportion & quality & every stage. 13
  • 14.  CLEANING :~ The gram are taken out of room and cleaned by labourersemployed for cleaning. Any dust particle or other particles along withgram are separated from it. Then the grams are read for further process. WASHING :~ To make Beshan, this is the second process of the production.In this process grams are washed and made gram separated from the dust. SEPARATING :~ After being washed grams are ready for separating process.This separating process is between gram and dal. When husk taken-up onto the gram become dal and ready to further processing. 14
  • 15.  GRINDING :~ In this process the dal are grinding in to the machine, whichis roller and palvarider flour. In this machine dal of gram is becomeBeshan which is the final product of the firm when the Beshan is ready itsgo to the packing department. PACKING :~ In this part or we can say in this manufacturing process,Beshan is packed in different scale in bardan bags, generally the scale ofpacking is 50 Kg. or 100 Kg. 15
  • 16. PARTICULAR AREA AREALand @ Rs 135 2,000 sq. ft. 2,70,000Building @ Rs. 2600 375 sq. mtrs. 9,75,000 Total 2,000 sq. ft. 12,45,000 16
  • 17. NO. PARTICULAR QTY. COST (RS.) 1 Separator & Cleaning 1 1,50,000 2 roller & Pulverizer 1 2,25,000 3 Sent Figure 1 1,40,000 4 Scale & Packing 1 50,000 5 Octroy Charge + Installation & Electrification 7,500 Charges 7,500 15,000 Total 5,80,000 6 Furniture 60,000 7 Tools 25,000 8 Computer & Telephones 45,000 Preliminary & Pre-operative 9 Expense 68,000 TOTAL 7,78,000 17
  • 18. The following is regarding raw-material required per monthto manufacturing Beshan. MONTHLY NO. DESCRIPTION QTY. kg. 1 Gram & Gram Dal 45000 Raw – material for Beshan, Rs. 20 per kg. Total Cost of Raw Material per 2 Month 1800000 Rs. 18
  • 19. No. Description Person1 Marketing Manager 12 Finance Manager3 Personnel Manager 14 Skilled Workers 25 Semi Skilled Workers 86 Clerk 17 Accountant 18 Peons 19 Computer Operator 1 Total 17 19
  • 20. The expected capacity utilization on double basis for 300 dasduring first year operation is 50 % The unit is expected to achieve full capacity utilization fromthe 2nd year onwords. PARTICULAR 1st year 2nd year 50% 100% Beshan 5,40,000 kg. 10, 80,000 kg. Total Rs ( P. A.) 1,08,00,000 2,16,00,000 20
  • 21. 21
  • 22. No. PARTICULARS1 Fixed Capital Details2 Personnel3 Other Expense4 Utilities5 Fixed Cost6 Variable Cost7 Working Capital Requirement8 Total Capital Investment9 Source of Finance10 Interest On Capital11 Loan Repayment Schedule12 Depreciation13 Production Schedule14 Details Of Sales15 Cost of Production16 Cost Sheet17 Operating Statement18 Profit & Loss A./c.19 Balance Sheet. 22
  • 23. No. Details Price1 Machinery a) Separator & Cleaning 1,50,000 b) Roller & Pulverizer 2,25,000 c) Sent Figure 1,40,000 d) Scale & Packing 50,000 e) Octroy Charge 15,000 Total 5,80,0002 Furniture 60,0003 Tools 25,0004 Computer 45,0005 Preliminary & pro-operative Exp. 68,000 Total 7,78,0006 Land & Building 12,45,000 Total Fixed Capital 20,23,000 23
  • 24. Salar Total Totla P.NO. Description Nos. y (P.M.) a. Production Staff1 Skilled Workers 2 3,500 7,000 84,000 Semi-Skilled 2 Workers 8 2,500 20,000 2,40,000 Total 27,000 3,24,000 Administration Staff 3 Accountant 1 3,500 3,500 42,000 4 Peons 1 2,000 2,000 24,000 5 Computer Operator 1 2,500 2,500 30,000 6 Clerks 1 3,000 3,000 36,000 Total 11,000 1,32,000 Manager Marketing Manager 7 (partner 1 12,00 Finance Manager 0 12,000 1,44,000 8 Production Manager Personnel Manager 12,00 (Partner) 1 0 12,000 1,44,000 Total 24,000 2,88,000 Total 62,000 7,44,000 24
  • 25. DETAILS AMT. AMT. (P. M.) (P.A.)Postage & Stationary 900 10,800Repair / Maintanance 3,400 40,800Advertisment & Publicity 1,200 14,400Miscellaneous Expenses 600 7,200Telephone Expense 3,500 42,000Transport 5,600 67,200 Total 15,200 1,82,400 25
  • 26. Details Amt. Amt P.M. P.A.Power 14,000 1,68,000Water 2,000 24,000Total 16,000 1,92,000 26
  • 27. PARTICULAR 1STYear 2nd year Rs. Rs. Administration Staff 1,32,000 1,32,000 Managers 2,88,000 2,88,000 Other Expenses(60%) 1,09,440 1,09,440 Particular 1st year 2nd Year Rs. Rs.Production Staff 3,24,000 6,48,000Utilities 1,92,000 2,56,000Other Expenses ( 40%) 72,960 1,45,920 27
  • 28. No. DETAILS Two Months P. A.1) Raw Material 45000 Kg. @ 20 Rs. 900000 18,00,000 1,08,00,0002) Personnel Fixed 70,000 4,20,000 Variable 54,000 3,24,0003) Other Expenses Fixed 18,240 1,09,440 Variable 12,160 72,9604) Utilities 32,000 1,92,000 Total 19,86,400 1,19,18,400 28
  • 29. No, DETAILS Rs. Rs.1) Fixed Capital a. Machinery 5,80,000 b. Furniture 60,000 c. Tools 25,000 d. Computer 45,000 e. Preliminary & Pro- 68,000 Operative Exp. f. Land & Building 12,45,000 20,23,0002) Working Capital 19,86,400` (2 months) Total Project Cost 40,09,400 Round about to Say 40,10,000 29
  • 30. Finance is the lifeblood for any unit. All transaction &production process revolve around the finance. Due to its location thefinancial facilities are easily available & Government. Also provides loansat subsidized rates. The unit will collect its required funds in followingways. No. DETAILS Rate Amount 1. Own Capital (60 %) 9% 24,06,000 2. Borrowed Capital (40 %) 11 % 16,04,000 Total 40,10,000 30
  • 31. No. PARTICULAR 1st Year 2Nd Year 50% 100 % 1 Own Capital 2,16,540 2,16,540 2 Borrowed Capital 1,76,440 1,41,152 Total 3,92,980 3,57,692No. PARTICULAR 1st Year 2nd Year 1 Opening Balance 16,04,000 12,83,200 2 Payment Of Principal 3,20,800 3,20,800 3 Payment of Interest 1,76,440 1,41,152 Total 4,97,240 4,61,952 31
  • 32. No. Name Of Assets 1st year 2nd year BUILDING 1 Building 9,75,000 8,77,500 Less : Depreciation @ 10 % 97,500 87,750 Depreciated Value 8,77,500 7,89,750 Plant & Machinery 2 Plant & Machinery 5,80,000 4,35,000 Less : Depreciation @ 25 % 1,45,000 1,08,750 Depreciated Value 4,35,000 3,26,250 Tools 3 Tools 25,000 21,250 Less : Depreciation @ 15 % 3,750 3,187 Depreciated Value 21,250 18,063 Computer 4 Computer 45,000 18,000 Less : Depreciation @ 60 % 27,000 10,800 Depreciated Value 18,000 7,200 Other Fixed Assets5 Other Fixed Assets 60,000 51,000 Less : Depreciation @ 15 % 9,000 7,650 Depreciated Value 51,000 43,350 32
  • 33. RAW MATERIAL REQUIREMENTNo. Particular 1st year 50 % 2nd year 100 % Rs. Rs.1. Gram & Gram 1,08,00,000 2,16,00,000 Dal (45,000 X 12 X 20) (90,000 X 12 X 20) Total 1,08,00,000 2,16,00,000 33
  • 34. Particular Amt. Amt.Capacity of Machinery (Kg.) 10,80,000 10,80,000Capacity Utilization 50 % 100 %Production (Kg.) 5,40,000 10,80,000Add : Opening Stock (kg.) - 54,000Less : Closing Stock (kg.) 54,000 10,800Kg. Sold 4,86,000 10,26,000Selling Price (Rs.) 24.5 24Total Rs. 1,19,07,000 24,62,400 34
  • 35. PARTICULARS 1st year 2nd year Capacity Of Machinery 10,80,000 Kg. 1,08,000 Kg.Capacity Utilization 50 % 100 %Production Quantity 5,40,000 kg. 10,80,000 kg. Variable costRaw – Material 1,08,00,000 2,16,00,000Labour 3,24,000 6,48,000Utility 1,92,000 3,84,000Other Expenses ( 40 % ) 72,960 1,45,920Total Variable Cost 1,13,88,960 2,27,77,920Variable Cost Per Unit 21.09 21.09 Fixed costDep. On Building 97,500 87,750Dep. On Plant & 1,45,000 1,08,750 MachineryDep. On Computer 27,000 10,800Dep. On Tools 3,750 3,187Dep. On Fixed Asset 9,000 7,650Labour 4,20,000 4,20,000Other Exp. (60 %) 1,09,440 2,18,880Int. On Capital 3,92,980 3,57,692Total Fixed Cost 12,04,670 12,14,709 Total CostV.C. + F.C. 1,25,93,630 2,39,92,629Total Cost Per Kg. 23.50 26.65 35
  • 36. DETAIL Price 1st year 2nd year P.U. 5,40,000 9,00,000 Kg. Kg.Raw Material 20.0 1,08,00,000 2,16,00,000 0Utility 0.40 1,92,000 3,84,000Direct Wages 0.60 3,24,000 6,48,000 Prime Cost 21.0 1,13,16,000 2,26,32,000 0Add : Factory Overheads a) Personnel Manager 0.30 1,44,000 1,44,000 b) Depreciation 0.60 2,82,250 2,18,137 c) Repair & Maintenance 0.10 40,800 48,960 d) Miscellaneous Exp. 0.02 7,200 14,400 Factory Overheads 22.7 1,17,90,250 2,30,57,497 3Add : AdministrativeOverheads 1. Postage & Stationary 0.02 10,800 18,000 2. Telephone Expenses 0.10 42,000 70,000 3. Accountant 0.10 42,000 42,000 4. Peons 0.04 24,000 24,000 5. Computer Operators 0.06 30,000 30,000 6. Clerks 0.07 36,000 36,000 7. Finance Manager 0.30 1,44,000 1,44,000 8. Interest On Loan 0.40 2,16,540 2,16,540 9. Interest On Bank loan 0.30 1,76,440 1,41,152 Cost Of Production 25.2 1,25,12,030 2,37,79,189 5Add : Opening Stock Of Beshan - 13,23,000Less: Closing Stock Cost Of Good Sold 2.45 13,23,000 26,46,000 22.8 1,09,70,590 2,23,15,037Add : Selling & Dist. Overheads Advertisement 0.03 14,400 27,000 36
  • 37. Transport 0.15 67,200 18,000 Selling & Distribution Cost 23.0 1,10,52,190 2,25,22,037 0 Profit 1.50 8,54,810 21,01,963 Sales 24.5 1,19,07,000 2,46,24,000 0 PARTICULAR 1ST year 2nd year Rs. Rs. (A) Total Sales 1,19,07,000 2,46,24,000Cost Of OperationRaw – Material 1,08,00,000 2,16,00,000Utility 1,92,000 3,84,000Wages 3,24,000 6,48,000 Total Cost 1,13,16,000 2,26,32,000Add : Op. Stock - 13,23,000Less : Closing Stock 13,23,000 26,46,000 37
  • 38. (B) Total Operating Cost 99,93,000 2,13,09,000 (C) Gross Profit [ A – B] 19,14,000 33,15,000Indirect Expenses Fixed 1,09,440 1,09,440 Variable 72,960 1,45,920Salary Of Staff 4,20,000 4,20,000Depreciation 2,82,250 2,18,137 Preliminary Exp.{W.D.} 10,200 8,670 8,94,850 9,02,167 (D) Total Indirect Exp. (E) E.B.I.T. [C – D] 10,19,150 24,12,833Interest of Owners Loan 2,16,540 2,16,540Interest On Bank Loan 1,76,440 1,41,152 (F) Total Interest 3,92,980 3,57,692 (G) E.B.T. [E – F] 6,26,170 20,55,141 (H) Tax @ 35 % 2,19,160 7,19,300 (I) E.A.T. [G – H ] 4,07,010 13,35,841Add : Depreciation 2,82,250 2,18,137Less : Payment Of Installment 3,20,800 3,20,800 Net Cash Received 3,68,461 12,33,178 38
  • 39. DETAILS 1st year Rs.Sales 1,19,07,000Closing Stock 13,23,000 Total 1,32,30,000 ExpenditureOpening StockPurchase 1,08,00,000Utility 1,92,000Wages 3,24,000Other Expense a) Postage & Stationary 10,800 b) Repair & Maintenance 40,800 c) Advertisement & Publicity 14,400 d) Miscellaneous Exp. 7,200 e) Telephone Exp. 42,000 f) Transport 67,200Salary 4,20,000Depreciation a) Building 97,500 b) Plant & Machinery 1,45,000 c) Tools 3,750 d) Computer 27,000 e) Fixed Assets 9,000Preliminary Exp. {W. D} 10,200Interest a) Own Loan 2,16,540 b) Borrowed Loan 1,76,440Income Tax 2,19,160Profit After Tax 4,07,010 Total 13,23,000 39
  • 40. DETAILS 1st year Rs. LiabilitiesOwn Capital 24,06,000Net Profit 4,07,010Loan Borrowed 16,04,000 Less : Loan Repayment 3,20,800Net Loan Borrowed 12,83,200Creditors 50,000 Total 41,46,210 AssetsFixed Asset 19,55,000 Less : Depreciation 2,82,250Net Assets 16,72,750Debtors 6,11,660Closing Stock 13,23,000Preliminary Expenses 68,000 Less : Written Down 10,200Net Preliminary 57,800Cash 2,00,000Bank Balance 2,81,000 Total 41,46,210 40
  • 41. Net Profit Ratio :~ Net Profit After Interest & Tax X 100 Sales = 4,07,010 X 100 1,19,07,000 = 3.42 %Gross Profit Ratio :~ Gross Profit X 100 Sales = 19,14,000 X 100 1,19,07,000 = 16.07 %Return On Investment :~ EBIT X 100 Sales = 10,19,150 X 100 40,10,000 = 25.40 % 41
  • 42. Cost Of Capital :~ Interest On Capital X 100 Capital Employed = 3,92,980 X 100 40,10,000 = 9.80 % ROI is hire Than COC , So We can say that Project is viable. 42
  • 43. Break even analysis refers to a system of determination ofthat level of activity where total cost equals total revenue, Boarderinterpretations refer to that probable profit at any level of activity. Therelationship among cost of profit, volume of production, profit & salesvalue established by Break Even Analysis. The Point of sales at whichthere is neither profit nor liss is regarded as BEP. At this point incomeequals expenditure. If production is enhanced beyond this level, Profitshall accrue & if it is decreased, loss shall be suffered. Following is the breakeven analysis of this project. 43
  • 44. Contribution = Sales Price - Variable cost (P.U.) = 24.5 - 21.09 = 3.41 Rs. Per Kg. B.E.P. = Fixed Cost X Capacity Utilization[ in unit] Contribution P.U. = 12,04,670 X 50 % 3.41 = 1,76,638 Kg.Contribution = Fixed Cost - Profit = 12,04,670 + 4,07,010 = 16,11,680 Rs. 44
  • 45. B.E.P. = Fixed Cost X Capacity Utilization[ in % ] Contribution = 12,04,670 X 50 % 16,11,680 = 37.37 %P. V. Ratio = C X 100 S = 16,11,680 X 100 1,19,07,000 = 13.50 % 45
  • 46. Machinery :JK PVT. LTD.Puna HighwayIndustrial Area.MUMBAIRaw Materials :Dalal Narendra PopatCanvassing Agent,Kirana Market , Kothari Bazar,AKOLA (M.S.)M/s. DEEPAK CANVASING AGENTCANVASING AGENTNATARAJ CHAMBER,BARADAN GALIDANAPITH,RAJKOT- 360001M/s. VALAJI MADHAVAJIMARKETING – YARDRAJKOT 46
  • 47. Success lies in the constancy of purpose. From the verybeginning it has followed the above punch lines. No doubt it is a small-scale unit, but from the viewpoint of production. Marketing, profits,services, etc. This unit will prove to be a successful unit. It is truly saidthat, “Knowledge & motivation coupled with sustained efforts is therecipe of success.” In any field, success demands lots if efforts,Knowledge, guidance and the most important thing motivation. Beshan isa food product, seeing the growth of its market it has a definite brightfuture. In short, innovative decision making, goal setting, drive &dynamism sums up the achievement of PC Pvt. Ltd Where all seven “S”of management viz. “System”, “Strategy”, ”Structure”, “Service”, “Staff”,“Skill” & “Style” are blended into a new stature. 47