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Business plan urvi.doc(parmar urvi) Business plan urvi.doc(parmar urvi) Document Transcript

  • A Business plan ON Prepared By: parmar urvi h. Batch: 2012-13, EnrollmEnt no.117360592066 mBa SEmEStEr III Under guidance of Dr.RAJESH PATEL. Institute:N.R.Vekaria institute of business management studies, Junagadh-362001 1
  • PREFACE The concept of entrepreneurial studies has appreciablychanged in nature & concept over the years. Entrepreneurialdevelopment & management has come to be recognizedglobally as the key to rapid & sustainable economicdevelopment as well as the welfare & progress of mankind The small scale industries occupies an importantposition in the industrial economy of the country Because ofadvantages in terms of low investment. High potential foremployment generation, etc. As I am student of M.B.A.. a professional degree course.Include one subject called Entrepreneur & Management ofsmall business. which guide the student how to become agood entrepreneur & what factors are keeping in their mindwhile setting up the small scale industries. I have an immense pleasure in presenting my views afterdoing hard work in a very clear – sense. I have tried my levelbest to make this business plan excellent. I hope that this PPRwill obviously satisfy the subject requirement & also providea general look of report. 2
  • ACKNOWLEDGEMENT I feel great pleasure that I get an opportunity to presentmy business plan before you. Firstly, I am thanking to my professors, He has triedvery hard & put lots of effort to guide me I am also thankfulto him because he had put their valuable time to me. And finally I am also very much thankful to my friends& my parents who guided me during preparation of businessplan. Date:30 oct. 2012 Place:junagadh Signature (Urvi Parmar.) 3
  • DECLARATION I undersigned Parmar Urvi , the student of M.B.A. hereby declare that this business plan is my own work. It hasbeen prepared by me, under the guidance & direction of prof.rajesh pate. The work has not been previously submitted to any otheruniversity for any other examination. Date:30 oct.2012 Place: junagadh. Signature (Urvi Parmar.) 4
  • INDEXSR. SUBJECT PAGE NO.NO. 1 Introduction 5 2 Project at Glance 6 3 Implementation schedule 7 4 Promoters Background 8 5 Justification of Location 10 6 Product detail 12 7 Production process 17 8 Investment 18 9 Financial Details 19 10 Working capital 20 11 Cost of production 23 12 Turn over (sales) 24 13 Net Profit/ Profitability analysis 24 14 Ratio analysis 25 15 Total fixed cost 26 16 B.E.P. Calculation 27 17 Bibliography. 33 5
  • INTRODUCTION The electronic quartz analog clock has brought arevolution in the clock industry. The quartz clock wereintroduced in the Indian market in 1977-78 & since thenmarket as well as production in India has been growing at atremendous rate some of the main features of the quartzclock are:  High accuracy  No winding required  Work in any position  Very low power consumption Hardly any service required & the longer life of theclock A typical quartz clock consists of the followingcomponents: (1) Mainly electronic circuit block (with componentslike IC, Quartz crystal, Capacitors, etc. mounted on a printedcircuit board) (2) Stepper motor (consisting of coil, stator & rotor) 6
  • PROJECT AT GALNCEUnit Name: Bharat electronic quartz ClockForm of Businessorganization: Partnership Firm.Location of Unit: 22- GIDC, Metoda, Kalavad Road, Dist. RajkotCommunicationAddress: 22- Jimmy Tower Gondal Road, Rajkot – 360002 Gujarat (India)Product: Electronic QuartzProduct Name: Bharat QuartzSSI reg. No.: Application has been made 7
  • IMPLEMENTATION SCHEDULE The major activities in the implementation schedulehave been listed & the average time for implementation ofthe project is estimated at 12 months.(1) Preparation of Project Report: 1 month(2) Registration & other formalities: 1 month(3) Sanction of loan by financial institutions:3 months(4) Plant & machinery (a) Placement of orders 1 month (b) Procurement 2 months (c) Power connection 2 months (d) Installation 2 months(5) Procurement of row materials: 2 months(6) Recruitment of technical personnel, etc 2 months(7) Trial production: 11 months(8) Commercial production: 12 months 8
  • PROMOTERS BACKGROUND(1) Name : Parmar Urvi H.(2) Age : 22 years(3) Educational/ Qualifications : MBA.(4) Working Area : Promoters(5) Address : “JYOTI” 150. Feet Ring Road, Ravi Ratna Park Block -09 Room –No.102 Rajkot 360007 9
  • (1) Name : Bhadla maushmi p.(2) Age : 22 years(3) Working area : Marketing Manager(4) Educational/ Qualifications : MBA (Marketing)(5) Experience : fresher(6) Address : 150 feet ring road, Shastri nagar, Rajkot – 360007(7) Investment of Both partner : 50 : 50 10
  • JUSTIFICATION OF LOCATION Plant location refers to the area where the plant willoperate to produce goods & services. The selection of anappropriate location enables the factory to operate smoothly.Efficiently with the minimum cost. It is estimated thatmanufacturing & distribution cost may vary to an extent of10% simply by virtue of the choice of plant location. The factory is the SSI units & is located in GIDC areai.e. Gujarat industrial & development corporation. Because ofthe units situated in GIDC, the units enjoy all incentives &certain subsidy made available to all industrial units. Theresult of this is reduction of cost of production. There are number of factor should be considered whileselecting the best site for locating the factory (1) Near ness to market : The electronic quartz is aconsumer goods. If the company is near to the market then tcome to know their customer choice & preference &accordingly they adjust in their quartz. (2) Man power : Man power is the main & importantpart of any factors which keep the other activities in run. Alltype of skilled workers are to be available in GIDC area &also from the village which is near to it. (3) Utility Service: Utility service like. 11
  • (a) Electrical supply is easily available & at cheaper rates in GIDC area. (b) Water supply is easily available (4) Transportation: Because of the units situated inG.I.D.C. the mode of transportation is road & easilyavailable & the rate prevailing in such are is also cheaperthan other location. (5) Communication: For communication purpose, theGIDC area is the best area because the telephone connectionis already been made to the Telecom Department. A postoffice is already operating & other facilities like Telex & Faxare also available & provided for the smooth functioning theunits. (6) Raw materials: Because our company ismanufacturing electronic quartz clock. So the raw materialsrequired is the semi finished goods which are easily availablein GIDC area at a cheaper rate. 12
  • PRODUCT DETAILS A typical electronic quartz clocks consists of thefollowing components/ parts & they are as describe bellows: This consists of mainly electronic circuit block withcomponents like I.C. quartz crystal, capacitors etc. mountedon a printed circuit board & steeper motor (consisting of willstator & motor) Mechanical components consisting of gear & upper &lower covers to hold the movement parts. Appearance parts consisting of cabinet, hands & dial. 13
  • Production PROCESS The process of assembly of clock is divided into twoparts (a) Assembly of Movement (b)Assembly of Clock (a) Assembly of Movement: The components viz.electronic circuits block (ECB), stepper motor, gear &movement covers require to be assembled in dust freeatmosphere. The gears in most of the cases require beinglubricant. The connecting wire E.C.B. have to be soldered tothe battery clips & the coil is to be soldered to the ECB. Before the movement is assembled, the ECB should betested on the universal Timer Quartz Analog tester & if anyadjustment for the time accuracy is required the same shouldbe carried out. The complete assembled movement can also beprocured from out side i.e. from the units who are exclusivelyassembling / manufacturing there movements. (b) Clock assembly: The finished module is nowfitted into cabinet case which is fitted with a dial. Next thehands are mounted on the movement & then the glass &backcover of cabinet are fitted. The needles have to be properlyfitted so as to be at accurate positions on dial while showingtime. Finally the battery putted in to the clock is put fortesting for at least 2 days before. 14
  • FINANCIAL DETAILS(1) Land & Buildings Description: No. Description Per Sq. M. Amount 1 Built up area 100 50,000 @ 500 sq. meter 2 Office & Stores 25 12,500 @ 500 sq. meter 3 Working shed 75 37,500 @ 500 sq. meter Total - 1,00,000 (2)Machinery and Equipment Sr. Description Qty. Rate Total No. 1 Quartz clock Tester 2 50,000 1,00,000 2 Multimeters 3 1,000 3,000 1,03,000 3 Electrification&installation 10,300 charges@10% of cost of Machinery & Equipment 4 Totalcost of machinery & 1,13,300 equipment 5 Cost of office 60,000 equipment & fumitures 6 Cost of tools / jigs / fixtures 10,000 7 Pre –operative expenses 10,000 TOTAL - 1,93,300 15
  • WORKING CAPITAL (PER MONTH)(1) Staff & Labour (Technical, office , sales & other) Sr. No. Category No. Salary Total 1 Manager 1 10,000 10,000 2 Skilled workers 2 5,000 5,000 3 Semi – skilled 1 1,000 1,000 4 Sales - assistant 1 2,000 2,000 5 Typist / clerk 1 1,500 1,500 6 Peon / chowkidar 1 1,000 1,000 20,500 7 Perquisites(15% salary) 3,075 Total salary 23,575 Say 23,600(2) Raw materials (per month on single shift basis) Sr. Description of Components Qty. Rate Total No. 1 Quartz movement mechanism 1 32 32 2 Cabinet with dial & 1 40 40 hands with packing Total - - 72 16
  • Total raw material / components required for one month =3000 X 72 =2, 16,000(3) Utilities (Per month): Sr. No. Description Total 1 Power – 500 unit @ 1.60 P.U. 800 2 Water 200 Total 1,000(4) Other Contingent expenses (per month) Sr. No. Description Total 1 Advertisement & publicity 3,000 2 Rent 5,000 3 Transport 10,000 4 Consumable stores 500 5 Insurance & taxes 200 6 Stationery 500 7 Postage & telephone 1,000 8 Repair & maintenance 500 17
  • (5) Total working capital require (per month) Sr. No. Particular Total 1 Staff & labour 25,600 2 Raw material 2,16,000 3 Utilities 1,000 4 Other contingent expenses 20,700 Total 2,61,300(6) Working capital for 3 Months: = 2, 61,300 X 3 = 7, 83,900(7) Total investment: Fixed capital 1, 93,300 Working capital 7, 83,900 (3 months) TOTAl 977,2 18
  • COST OF PRODUCTION (PER ANNUM) Sr. Descriptions Amount No. 1 Total recurring expenditure 29,77,200 2 Dep. On machinery & equipment @ 10,300 10% 3 Dep. On office equipment @ 20% 12,000 4 Dep. On tools / jigs / fixtures @ 20% 2,000 5 Interest on total investment 1,95,440 Total 31,96,940 19
  • TURNOVER (PER YEAR) Sr. Sales Qty Rates Value (Rs) No. (Rs) 1 Electronic Quartz 3800 100 38,00,000 Analog clocks NET PROFIT OF THE YEAR (PROFITABILITYANALYSIS) Particulars Amount Sales 38,00,000 Less: cost of production 31,96,940 Total 6,03,060 20
  • RATIO ANALYSIS Net Profit Ratio: (NPR)NPR = Profit X 100 Sales = 6, 03,060 X 100 38, 00,000 = 15.87% Rate of Return (ROR)ROR = Profit X 100 Total capital investment = 6, 03,060 X 100 9, 77,200 = 61.71% 21
  • TOTAL FIXED COST (FC)Sr. Particular AmountNo.1 Depreciation 24,3002 Rent 60,0003 Interest on capital investment 1,95,4404 Insurance 2,4005 40% of salary & wages 49,9206 40% of other contingent expenses 79,200 Total 4,11,260 22
  • BREAK EVEN POINT (B.E.P.)B.E.P. = Fixed cost X 100 Fixed cost + Net Profit = 4, 11,260 X 100 4, 11,260 + 6, 03,060 = 4, 11, 26,000 10, 14,320 = 40.54 % 23
  • BIBLIOGRAPHY1 Production & Operation Management -Chunawalla Patel2 Financial Management - By Khan & Jain 24
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