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    New -coffee & candy -- ppr New -coffee & candy -- ppr Document Transcript

    • ON PREPARED BY Pooja b Kothari Class MBA SEM 3 ROLL NO. 34 ACADEMIC YEAR 2009-10 COLLEGEN R V I BMS COLLEGE JUNAGADH GUIDED BY RAJESH PATEL
    • Declaration I undersigned KOTHARI POOJA B. a student of T.Y.M.B.A 3. here by declare that the project work presented in thisreporting is my own work & has been carried out under thesupervision of Prof. Rajesh patel head of the department ,M.B.A.NRVIBMS College affiliated to GUJRAT TECHNOLOGICALUNIVERSITY,JUNAGADH This work has not been previously submitted to any otheruniversity or any institution from examination or any other purpose.Date: SignaturePlace :junagadh ________________ ( Kothari pooja b )
    • Acknowledgement I feel great pleasure that get an opportunity to present myproduct project report before you. The present report could not beenpossible but for the co- ordination help and guidance of lecturer,director and faculty members of nrvibms college. Firstly I give my sincere thanks to the head of themanagement department, who has been tried very hard and put lotsof efforts to guide me. Secondly II give my sincere thanks to the director of nrvibmsCollege Mr. rajesh patel , who give me inspiration to do thisproject.Date:Place:
    • PREFACE The subject “THE NEW ENTERPRIZE AND INOVATIONMANAGEMENT” has been including in the syllabus of . by theGTU. with a view to develop the entrepreneurship skill among thestudent. There is entrepreneurship development program is alsoconducted by the government authority to give the training forestablishing a new firm and to develop the small scale industry. The product project report is very important as it reveals theentire structure of setting up a small scale industry and gives the allrelated knowledge that request to be a good entrepreneur. With regard to this, I presented and submitting this projectreport with sincerely.
    • IndexSr. No. Particular Page No. 1. Introduction 6 2. Project At Glance 7 3. Partner’s Background 8 4. Implementation of Schedule 9 5. Justification of Location 10 6. Product Detail 13 7. Raw Materials 14 8. Manufacturing Process 15 9. Market Analysis 17 10. Basis & Presumptions 18 11. Machinery & Equipments 19 12. Financial Detail 20 13. Break Even Analysis 24 14. Name of Supplies 27 15. Future Plan 28 16. Conclusion 29
    • Introduction As we know that the small scale industry is the pillar of theIndian economy. most of the business is carried out in India is fromthe small scale industry. Small scale industry provides basicmaterial or raw material to the large scale industry and is thepartner of their success. The small scale industry is very importantto the economic development as it reduce employment crisis, itproduce the basic product and it also contributes in the total exportand foreign research to the country. Due to the benefits facilitiesproviding by the government to the country. So, there is wide scope to establish a small scale industry as ifenjoy all benefits facility and subsidies providing by thegovernment for the development of small scale industry and alsofor the economic development.
    • PROJECT AT GLANCEName of the unit : R.K. Food IndustryOffice address : R.K. Food Industry Aji G. I. D. C. Plot No.333 RajkotForm of unit : Small Scale IndustryName of the product : Toffee & CandyBrand name : SmilyName of the partner : Kothari Pooja B.. Vipani Kajal J.Cost of project : 15,00,000Factory area : 1600 sq.mt.Market area : GujaratFinancial contribution : 50% own 50% financial institutesTotal employees : 15SSI reg. no. : Applied forSubsidy reg. no. : Applied forShift :1Off day : Friday
    • Partner’s BackgroundPartner 1:Name : Kothari Pooja B.Address : “Raj Tarang” Apt B/11 Talav Street 3 JunagadhAge : 21Financial contribution : 50%Education qualification : M.B.A.Working responsibility : FinancePartner 2:Name : Vipani Kajal J..Address : Jetpur road, B/d old bus stand, Dhoraji, 360 410Age : 28Financial contribution : 50%Education qualification : M.B.A. from B.K. School ofManagementWorking responsibility : Production & FinanceExperience : as a production manager in his own business for last 5 years
    • Implementation of ScheduleSr.no. Particulars Time period1 Small Scale Industry Registration 15 days2 Acquision Of Land 15 days3 Preparation Of Project Report 1 month4 Finance Assistance 2 month5 Building Construction 3 month6 Arrangement Of Power 1 month7 Acquision Of Machinery 1 month8 Installation Of Machinery 1 month9 Appointment Of Staff & Labour 15 days10 Trial Production & Shooting Problems 15 days Total time period require for the commencement ofcommercial production 12 months.
    • Justification of Location Site selection is an important activity which decides the factof the business. A good location may reduce the cost of productionand distribution to a considerable extent. The reduction helps inevaluate either the competitive strength or the profit margin of thebusiness. Location of a business involves a large relatively permanentinvestment. If the site selection is not proper all money spent onfactory building, machinery and their installation will go in wasteand the owner has to suffer a great loss. There fore, the site for thefactory should be selected very carefully, with selecting site. It isnecessary to consider technical, commercial and financial aspectthan the select a site that may provide maximum advantages.1) PROXIMITY TO RAW MATERIAL AND MARKET: An important consideration for location is the proximity to raw material and source and nearness to the market for the final product terms of a basic location model, the optimal location is one where the total cost plus production cost plus distribution is minimized. The maximum raw material available at the Rajkot and also it brought from Ahmedabad & Mumbai.
    • 2) AVAILABILITY OF INFRASTRUCTURE FACILITES: Availability of power, transportation, water andcommunication should be carefully assessed before a locationdecision is made. Adequate supply of power is a very important condition forthe location. Insufficient power can be a major constraintparticularly in the case of an electricity intensive project. Inevaluating power supply, following should be looked into: • The quantum of power available , • The stability of the power tariff, etc. For transporting the inputs of the project and distributing the output of the project, adequate transport connection whether by rail, road, sea, island. Water of air is required. The availability, reliability cost oftransportation for various alternatives locations should be assessed.3) LABOUR SITUATION: In labour intensive project the labor situation in a particularlocation becomes important. The key factor is to be considered inevaluating the labour situations are: • Availability of labour – skilled, semi skilled & unskilled • Prevailing market about rates • Labour productivity
    • 4) OTHER FACTORS: • Climate conditions • Political factors • General living condition • Proximity to ancillary unit, etc. From the above detail discuss it can derive that the R.K.Food Industry situated at a very favorable, proper and ideal location.
    • Product Detail The product is the most tangible and important singlecomponent of the marketing program. With out a product, nothingto promote, nothing to price. Product is vehicle by which acompany provides consumer satisfaction. It is the engine that pullsthe rest of the marketing program. Product fills in the needs of thesociety. Toffee and candy is in the great demand, it is an evergreenproduct or we can say in marketing term i.e. the product, whichnever see its decline stage of its life cycle and is being extensivelyused by the all segment of people. So, we can say that it is made forall age people. It can be form in any step and size and just byadding the different flavors we can satisfy the all kinds of consumerwho have the different taste and choice at the different time.
    • RAW MATERIALS⇒ TOFFEE1. Sugar & liquid glucose2. GMS3. Milk powder4. Vegetable fate5. Starch6. Salt7. Food colours and essence8. Coco powder and coffee powder⇒ CANDY1. Sugar & Glucose2. Milk Powder3. Vegetable4. Sordid Acid5. Food Colours And Essence6. Coconut And Coffee Powder
    • MANUFACTURING PROCESS⇒ TOFFEE:• Sugar, liquid glucose ,water, salt add in the batch cooker• Then add milk powder and vegetable fate and mix it.• The mixture is adding in boiler with stretch and boils it at the temp. of 200 c. this process will take time about the 20 minutes• Than this come to cooling plate to cool the material and then add flavors, colours, and essence and mix it.• After that this mixture is came to batch roller. Here through the different types of die different shape are given to toffee by the automatic machine.• Then the toffee came for packaging and packed by the automatic machine in different quantities.
    • ⇒ CANDY:• Sugar, liquid, glucose, water milk powder and vegetable fate are adding in the batch cooker and mix it.• This mixture of material come to stream boiler and boils the mixture at the temp. of 300 c. this process takes time of 15 to 20 minuts.• After that the material came to candy vacuum machinery and then adding the flavours, colours and essence and mix it.• Then it came to cooling plate.• After cooling the material it came to batch roller. Heat the shape to candy is dome through the different die.• Then the candy is come to pilo-cack machinery and the candy is packed in the different quantities.
    • Market Analysis Today, the world is known as global village where the markethas very wide meaning. There is mot requiring meeting place or theface to face meeting of seller and buyer. But by the means ofinteraction or intercommunication the buyer and seller are meetingeven with out face to face meeting of with knowing to each otherdirectly. hear, the main role performs by the middlemen whofacilitate the all marketing operation. There is a very well known not international, also localcompany’s in the market that engages in producing TOFFEE ANDCANDY and chocolates like parle, Cadbury and there is more orless competition between them. DISTRIBUTION CHANNEL WHOLESALERS RETAILERS CONSUMERS
    • Basis & Presumptions The unit will work for 9 hours in a day on one shift basis, inc. lunch time. Wastage has been considered at the rate of 2% The time period for achieving full of max. capacity of production is 3 year The labour wages are considered as per the prevailing wage rate in the market The unit is working for the 6 day in a week. Working efficiency of the unit will be the 75%
    • Machinery & Equipments⇒ CANDY1. Steam boiler2. Batch cooker with vacuum3. Plasto plast machinery4. 3 stage convener5. Cutting plan6. Candy vacuum machinery7. Pilo pack machinery8. Tools and other Misc.Instruments⇒ TOFFEE1. Boiler2. Batch cooker3. Stage wrapl seizer4. Toffee content wrap machinery5. Cooling plate
    • Financial Detail FIXED CAPITALSr. Particulars Sq. mt. Rs./ Sq. Amt.No. Mt.1 Land 250 2000 5,00,0002 Building 250 3000 7,50,000 TOTAL 500 5000 12,50,000 TOTAL FIXED ASSENTS Sr. Particulars Amt. No. 1 Land & Building 12,50,000 2 Total Machinery & Equipment 12,50,000 TOTAL 25,00,000 WAGES & SALARY ADM.
    • Sr. Particulars No. of Amt.No. Employees ( p.m.) 1 Supervisor 1 5,000 2 Mac.Operators 4 16,000 3 Semi Skilled Workers 3 9,000 4 Skilled Workers 4 16,000 5 Helper 2 4,000 6 Office Assistant Account 1 5,000 7 Sales Officer 5 15,000 8 Person & Watchman 5 10,000 80000Add: Perquisites@15% 12000 NET WAGES & SALARY 92000
    • OTHER CONTINGENT EXPENDITURES Sr. Particulars Amt. No. 1 Printing & stationery 5,000 2 Telephone & postage 3,000 3 Transportation exp. 12,000 4 Misc.exp. 2,500 5 Repair 2,500 TOTAL 25,000 TOTAL WORKING CAPITAL Sr. Particulars Amt. No. 1 Raw material 5,00,000 2 Wages & salary 80,000 3 Utilities 20,000 4 Other contingent exp. 25,000 TOTAL 6,25,000WORKING CAPITAL OF THE 3 MONTHS : 3* 6,25,000 =18,75,000WORKING CAPITAL OF THE 12 MONTH S: 12* 6,25,000 =75,00,000 TOTAL CAPITAL INVESTMENT Sr. Particulars Amt. No. 1 Total Fixed Capital 24,50,000
    • 2 Total W.C. 18,75,000 TOTAL 43,25,000 SOURCES OF FINANCESr. Particulars Contribution Amt.No. 1 Owner capital 50% 2162500 2 Bank loan 20% 865000 3 Other loan 30% 1297500 TOTAL 100% 4325000 INTEREST ON CAPITAL Sr. Particulars Rate Amt. No. (%) 1 Owner capital 15% 324375 2 Bank loan 17% 147050 3 Other loan 16% 207600 TOTAL 679025 COST OF PRODUCT Sr. Particulars Amt. No. 1 Total W.C. 7500000 2 Dep. On Mac. (20%) 240000 3 Dep. On Land & Building (10%) 125000 4 Int. On Capital 679000 TOTAL 8544025
    • SALES PER ANNUMSr. Particulars Production Production Price Amt.No. Monthly annual (K.G.) (K.G.)1 Toffee 12000 144000 30 43200002 Candy 12000 144000 35 5040000 Total 9360000
    • FIXED COSTSr. No. Particulars Amt. 1 Dep. On Building 125000 2 Dep. On Machinery 240000 3 35% of Wages & Salary 32200 4 40% of Other exp. 10000 TOTAL 407200 V.C. = T.C. - F.C. = 85,44,025 - 4,07,200 = 81,36,825
    • PROFIT BEFORE TAX = TOTAL REVENUE – TOTALCOST = 93,60,000 – 85,44,025 = 8,15,975TAX = 8,15,975 * 30% = 2,44,792PROFIT AFTER TAX = PROFIT BEFORE TAX – TAXPAYABLE = 8,15,875 – 2,44,792 = 5,71,183
    • Break Even Analysis• Break even point = fixed cost -------------------- * 100 Fixed cost + profit 4, 07,200 = ------------------------ * 100 4,07,200 + 5,71,183 = 41.62%• NAT PROFIT RATIO = NET PROFIT ----------------------- * 100 SALES = 8, 15,975 ---------------- * 100 93, 60,000 = 8.72%
    • • CONTRIBUTION = SALES – V.C. = 93,60,000 – 81,36,825 = 12,23,175 • PROFIT VOLUME RATIO = CONTRIBUTION --------------------------- * 100 SALES = 12,23,175 ------------------- * 100 93,60,000 = 13.07 %SALES AT B.E.P. = FIXED COST -----------------------* 100 P/V RATIO = 4,07,200 ------------- * 100 13.07% = 31,15,532
    • Name of suppliers1. M/S Vadgama Eng. Works Fac. Area, Opp. Law Garden Ahmedabad2. M/S India Bakery Pvt. Ltd. Nr. Juhu Chopaty Bombay3. M/S Patel & Patel Group C.G. Road Ahmedabad Raw material supplier1. Nutrin Syrups Ltd. Metoda plot no. 90 Rajkot2. Dairy Fresh & Dairy Farm Near Tirupati Petroleum Rajkot
    • Future plans To increase the profit of the co. To capture the local market share in the near future To expand the business activity & also producing food item like, biscuit, bread etc. To implement the new technology in the business in the neat future.
    • Conclusion To conclude I must say that this is a great experience for thestudent of M.B.A. This will enhance the entrepreneur skill amongthe student, I get practical knowledge from the project like this andaware about the industrial env. I got knowledge about the startingof the business to the production process and to the selling of theproduct. These will also reveals with the small scale industry for thepreparation of this ind. Like the same and it was a greatexperiences. At last but not in a least I wish and hopes that the co. get moresuccess and achieve its all desire goal in the near future.