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    Bhavu Bhavu Document Transcript

    • Business plan on COLD DRINKS PREPARED BY Name: - Thumbar Bhavisha Class: - M.B.A. Sem-III Enro. No: - 117360592042 Academic Year: - 2012-13 SUBMITTED TO Dr. Rajesh patel COLLEGEN.R. Vekaria Inst. of Business Mgt. Studies, Junagadh 1
    • DECLARATION I, the undersigned Thumbar bhavisha a student of M.B.A.SEM-IIIhere by declare that the project work presented in this report is own my work &has been carried out under the supervision of Dr.Rajesh PatelThis work has not been previously submitted to another university for anyexamination.PLACE :- JUNAGDH -------------------DATE :- (THUMBAR BHAVISHA) 2
    • PREFACE M.B.A. course is a special course, which prepares young entrepreneurs,& it’s very essential that they should have the basic knowledge about how thesmall scale business can be started or which type of project is to be submittedto the banks and other financial institution for the purpose of loan. One of the subjects namely entrepreneurship and management of smallscale business has covered this aspect with a view to create and developentrepreneurial skill among the students. Today in the growth rate of Indian economy, S.S.I. plays a vital role bycontribution of 40%, to the total national income. Hence, university has included preparation of such project within thepreview of its syllabus. 3
    • ACKNOWLEDGEMENT It is really a matter of great pleasure for me to present their creative andpractical work. At this stage product every entrepreneur prepares report oflearning and it before starting of actual production. I would like to express my deep gratitude to prof. Jay Patel for his co-operation and guidance. Without his support my report would have been verydifficult to complete. I am also thankful to all those who consisted me in preparation of themanuscript. I would like to thank my friends who helped me in this project.PLACE :- JUNAGADH -------------------DATE :- (THUMBAR BHAVISHA ) 4
    • INDEXSR. PARTICULARSNO. 1 Introduction 2 Project at glance 3 Proprietor’s background 4 Justification of location 5 Market potential 6 Production process 7 Product usage 8 Raw material 9 Basis & presumption10 Implementation schedule11 Fixed cost12 Variable cost13 Working capital14 Total cost of project15 Sources of capital16 Cost sheet17 Trading A/C18 P & L A/C19 Balance sheet20 Risk factor21 Conclusion 5
    • INTRODUCTION Unemployment is increasing in our country. The large scale industries,which do not provide wide employment, because they are capital intensive. So,the small-scale industries must be developing in our country because they arelabour intensive. So, they can provide more employment. The SSI ensures more equitable distribution of the national income andthey facilitate an effective mobilization of resources of capital & skill. Smallindustries are desirable because it is responsible for dispersal of productionunits to small towns & villages. 6
    • PROJECT AT GLANCE Name of the unit Cuberoxx pvt ltd. Registered office Plot no – 228, GIDC, lodhika, Kalawad road, metoda, Rajkot. Location of unit Plot no – 228, GIDC, lodhika, Kalawad road, metoda, Rajkot. Form of organization Partnership firm Name of owner Paresh Hinsu Aryan malhotra Nilesh kanani Name of product Cuberoxx Size of unit Small scale SSI registration no. Applied forSubsudy registration no. Applied for Cost of project 3000000 Means of finance SBI bank Own capital Cost of capital 10% Return on investment 33.25% Web site www.Cuberoxx.com E-mail cuberoxx@gmail.com Since R.O.I. > C.O.C., so this project is viable. PROPRIETOR’S BACKGROUND 7
    • Name Paresh Hinsu Aryan malhotra Nilesh kanani Age 21 years 22 years 22 years Address “ Gopal krupa” “ Aryan” “Matru ashish” Raghuvir society, Astron society, Racecourse park, Rajkot. Rajkot. Ring road, Rajkot. Academic B.B.A.(finance) B.B.A.(marketing) B.E.(mechanical) qualificationRole in the unit Finance manager Marketing manager Production manger Financial 25 % of total capital 25 % of total capital 25 % of total capital contribution JUSTIFICATION OF LOCATION Location plays an important role in starting industry. Before startingany industry entrepreneurs have to take a decision about the location of 8
    • industry. They have to select that location where all the facilities must beavailable. They have to take right decision about the selection of locationbecause once a location selected it can not be change in the near future. Thefollowing should be taken into consideration. 1. Availability of market :- Market plays an important role in the selection of location. Market should be near to the industry so; the immediate sale of product is possible. It also help in reduction of cost by reducing storing of finished goods, avoid the cost of transportation, etc. 2. Availability of labour :- Without manpower no one can start his or her industry. If you have a machine but not manpower you can not start your industry. So, labour should be available at cheap rate. 3. Availability of transport :- It required for assembling of row-material and distribution of finished product. So, all type of transportation facility should be available. Thus, all the above factors justify the selection of the location. So,the selection would definitely contribute to the profitability. MARKET POTENTIAL 9
    • Liberalization of the Indian Economy since July 1991 has given boost tothe industrial development all over the nation. It has given new spirit tovarious industries in general and cold drinks industries in special.COMPETITION: In the studies made by the promoters aboutcompetition in the market of cold drinks it has been observed that there is lowlevel of competition prevailing in the market. The concern has decided to capture the market and achieve its salestarget with the use of following two aspects: 1. Reasonable market price 2. Quality control The concern has proposed the sale price of its product quite lower thanthe prevailing market price. Hence the unit’s product would be moreacceptable by the consumer in comparison to other manufacturers.MARKETING AND SELLING ARRANGEMENTS: The firm has developed very wide contacts for the product proposed tobe manufactured. Moreover it has also contacted customers of the proposedproduct. Prospective customers are general public so the firm targeted more togeneral people. 10
    • PRODUCTION PROCESS Bottle Cleaning ↓Passes through the filling machine ↓ Putting co2 and water in bottle And cap the bottle ↓ Checking of the bottle ↓ Store housing 11
    • MANUFACTURING PROCESS IN DETAILS1. Bottle cleaning: In the manufacturing process of colddrinks first step is to cleaning the bottle by putting water in it.2. Passes through the filling machine: After cleaning the bottle it passes through the filling machine where mixture of assens, sugar and other material is put in it in certain quantity.3. Putting co2 and water in bottle and cape the bottle: This is the third step. In this step co2 and water is put in the bottle and than cap the bottle is being done by machine.4. Checking the bottle: After caping the bottle it is being passes through the checking defected bottle is being put in side. 5. Store housing: Last step in process is storing the bottle in store house. 12
    • PRODUCT USAGE The finished product of the proposed project is cold drinks. The jobpasses through different manufacturing processes before it is converted intofinished product. Cold drinks have wide use in general public as a drink. So, we can saythat there is wide scope of demand for the cold drinks. So, ultimately by observation it can be said that there is wide use of colddrinks, which suggests big demand in the market. 13
    • RAW MATERIALThe raw material is the base for the production. The required raw material isco2, assens, sulphuric acid, sytric acid, sytric, sugar, water.The raw material of this unit is easily obtained from the market. The rawmaterials required in this unit are:  co2  assens  sulphuric acid  sytric acid  sytric  sugar  water 14
    • BASIS AND PRESUMPTIONNo. Particulars Particulars 1 Working days 6 days in week & 300 days in year 2 Shift Dual shift 3 Working hours 8 a.m. to 6 p.m. 4 Government policy Liberal 5 Banking rates 9% on term loan 6 Depreciation Building 10% Furniture 10% Plant & machinery 10% Bottle & carat 10% Other assets 10% Vehicle 10%7 Installed capacity 200000 unit8 Employment potential 25 15
    • FIXED ASSETSNo. Particulars Amount 1 Land 1250000 2 Building 200000 3 Furniture 50000 4 Other assets 500005 Machinery 5100006 Bottle and carat 7500007 Vehicle 1000000 Total 3810000 VARIABLE COST No. Particulars Amount 1 Raw material 7228000 2 Direct labour 633600 3 Other expenses 378000 Total 8239600 16
    • WORKING CAPITAL REQUIREMENT No Particulars Amount Amount (per months) (per Annum) 1 Raw material 602333 7228000 2 Staff & labour 88000 1056000 3 Other expenses 48333 630000 Total 738666 8914000 TOTAL COST OF PROJECT No. Particulars Amount 1 Fixed cost (purchase fixed assets) 3810000 2 Working capital 790000 Total 460000 SOURCES OF CAPITALNO Particulars Rate Amount 1 OWN CAPITAL 8% 3000000 2 Borrowed capital S.B.I. 9% 1000000 3 Deposit received from dealer - 600000 Total 4600000 PROJECTED COST SHEET Particulars Amount G.Total Raw material 7228000 17
    • Direct labour 450000 Direct expenses 140000 Prime cost (A) 7818000 Salary 288000 Repairs 20000 Depreciation 246000 Factory cost (B) 554000 Salary to office staff 222000 Interest on capital 330000 Indirect expenses 70000 Depreciation 10000 Office & admn. Cost (C) 632000 Cost of production(A+B+C) 9004000 Indirect salary 96000 Advertisement expenditure 300000 Transportation 100000 Selling and distribution cost 496000 Cost of sales 9500000 Sales 10500000 Profit 1000000 PROJECTED TRADING ACCOUNT Particulars Amt. Particulars Amt.To purchase a/c 7228000 By sales a/c 10500000To electricity 3 phase a/c 75000To water charges a/c 15000To freight inward a/c 50000To salary a/c :Skilled labour; 210000Unskilled labour; 240000 450000 Gross profit 2682000 10500000 10500000 PROJECTED PROFIT & LOSS A/C 18
    • Particulars Amt. Particulars Amt. To salary a/c 606000 By trading a/c 2682000 (gross profit transferred) To indirect exp a/c 490000 To depreciation a/c:Building 20000Plant & machinery 51000Furniture 5000Vehicle 100000Other assets 5000Bottle & carat 75000 256000To interest on capital a/c 330000 To income tax a/c 205000 To net profit a/c 795000 2682000 2682000 PROJECTED BALANCE SHEET Particulars Amt. Particulars Amt. Capital accounts : Fixed assets : Paresh hinsu 1000000 land 1250000 Aryan malhotra 1000000 Building 200000 Nilesh kanani 1000000 Less : dep. 20000 180000 Secured loans: Plant and machinery:510000 S.B.I. bank 1000000 Less: dep. 51000 459000 Unsecured loans: Furniture & fixtures 50000 Deposit received from 600000 Less : dep. 5000 45000 dealer Accounts payable 160000 Vehicle 1000000 Net profit 795000 Less : dep. 100000 900000 Bottle & carat 750000 Less : dep. 75000 675000 Other fixed assets 50000 Less : dep. 5000 45000 Accounts receivables 146000 Bank balance 19
    • S.B.I. bank 1000000 Cash in hand 900000 5555000 5555000 RISK FACTORS In modern business world there is no existence of any such businesswhich has not face any difficulties in terms of risk. Every business firm has todeal with risk factors such factors which are affecting in the preset situation ofproject are: COMPETITION: Existing competition from the other manufacturers may cause the growthof sales and there is a risk of decline in sales and fall in demand. GOVERNMENT POLICY: Government policy also affects the business decisions in terms of pricechanges, tax rate changes, production limitation etc. 20
    • CONCLUSIONFollowing are the conclusion that the firm should take in to consideration for the futureobjectives. 1. The firm should increase the no of other cold drinks flavour in its portfolio. 2. Selling and marketing efforts needs to be increased and also requires differentmediums for the promotion of the product. 3. The firm should charge the lowest possible price for its product to increase thesales. 2. Wastage of material should be minimized to its optimum level. 21
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