Business about candles

1. Lightingupyourlife

2. General
Information
Name of the Firm
Type of
Organization
Name of Partners
Project
Locatio
n
:Candle wonders pvt.
Ltd.
:Partnership Firm
:Sudesh B.
Nair
Siddharth V. J
:Candle Industry
:Bengaluru

3. Objectiv
e
Our s is a Young Enterprise company dealing in manufacturing and trading
of candle’s for the product market.
We as a company aim to produce and sell variety of candles to the general
public.
Wanting to reach Maximum people and provide a warm and a lovely glow
to their life.

4. Vision &
Mission
VISION:-
To light up the life of each and every family.
MISSION:-
To become a dominant player in the chosen field and to spread the light in
the world.

5. Candles have come a long way since their initial use.
Although no longer man’s major source of light, they continue to grow in
popularity and use.
Today candles symbolize celebration, soothe senses, define ceremony, and
accent home decors- casting a warm and lovely glow for all to enjoy.

6. PRODUCTION
PROCESS
First the wax is been heated and is converted into liquid.
The liquid is then filled into mould machines which convert’s the liquid
into solid form.
Later it is sent to camphor machine which gives shape to the candles.
And at Last it is sent for packing. This process takes 3 hours to produce
200 candles.

7. MARKETING
PLAN
Target Market
In India problem of electricity is known as one of the big problem mainly we concentrating on villages
1,80,000 villages are there in India and using candles rural people are our target as well as urban
people this problem is all over in country
Marketing Mix-4 P’s of Marketing
Product
Candles-Features good quality with low price.
Price
Depends on the type- Reasonable Price
Promotion
Our product is promoted through:
Catalogs and Pamplets
Advertisements in local news paper.
Place
We have adopted direct marketing with no intermediaries. Our product is marketed online through our
own website and our own retail outlet in all cities.

8. HUMAN RESOURCE
PLAN
Sr.No Particulars No Wages/
Salaries (PM)
Annual
Expenses
1 Managers 1 5,000 60,000
2
Semi skilled
Labours
2 3,500 84,000
3
Unskilled
Labours
4 2,500 1,20,000
Total 7 2,64,000

9. Raw material
Sr.
No.
Particular Amt per unit
1 Wax 2.00
2 Thread 0.50
3 Colors 0.50
4 Packaging 1.00
Total 4.00

10. Production Program:
No. of working days per annum - 300
days
No. of working shifts (8 hrs per day)
Installed Capacity (per day) – 400
Candles

11. FINANCIAL
PLAN
Sr.
No.
Description Nos. Required Rates Total Value (Rs)
1 Chalk moulds 2 25,000 50,000
2 Camphor
machine
2 20,000 40,000
3 Heater 1 20,000 20,000
Total 1,10,000
Machineries /
Equipments:

12. Total cost of the
Project:
Sr. No. Particulars Total Value
1 Fixed Capital
i. Land & Building
ii. Machineries
2,50,000
1,10,000
2 Working Capital 1,00,000
3 Preliminary & Pre-Operative
Expenses
20,000
Total Value 4,80,000

13. Source of
Finance:
Sr. No. Particulars Amount
1 Partners Investment
(2,50,000 each)
5,00,000
Total Value 5,00,000

14. Estimated Cost
sheet
Particulars
Amount
Per units Fro 400 unit
Direct material 4 1600
Direct labour 1 400
Prime cost 5 2000
Add Factory Overhead 1 400
Works cost 6 2400
Add Administrative Overhead 1 400
Cost of production 7 2800
Add Selling and Distribution Overhead 1 400
Cost of product 8 3200
Profit 2 800

15. Calculation of
B.E.P
Sales
Variable cost
Fixed cost
Contribution
= 10 * 1,00,000 =
10,00,000
=6 * 1,00,000 = 6,00,000
=97,000
= Sales – Variable Cost
= 10,00,000 - 6,00,000 =
4,00,000
Profit volume ratio = Contribution*100
Sales
= 4,00,000* 100
10,00,000
= 40%
B.E.P
B.E.P in units
= Fixed cost * 100
P/v ratio
= 97,000 * 100
40
=2,42,500
= 2,42,500 = 24250
units
10

16. FINANCIAL
STATEMENTS
Particulars Amount Particulars Amount
To Purchases 4,80,000 By Sales 10,00,000
Manufacturing
Expenses
1,20,000 Closing stock 2,00,000
Wages 2,04,000
Gross profit c/d 3,96,000
Rs. 12,00,000 Rs. 12,00,000
To Salary 60,000 Gross profit b/d 3,96,000
To Distribution exp 1,00,000
To net profit c/d 2,36,000
Rs 3,96,000 Rs 3,96,000
Dr
Trading and Profit and loss
account For the year ending 31st
march 2016
C
r

17. Balance Sheet As on 31st march
2016
Liabilities Amount Assets Amount
Capital 5,00,000
Add net profit +2,36,000
7,36,000 Land & building 2,50,000
Less Depn @5%-12,500
2,37,500
Creditors 65,000 Machinery 1,10,000
Less Depn @10% -11,000
99,000
Investment 2,00,000
Debtors 1,20,000
Preliminary Exp 20,000
Less Written off - 2,000
18,000
Cash in hand 1,26,500
Rs 8,01,000 Rs 8,01,000

18. FINANCIAL
STATEMENTS
Particulars Amount Particulars Amount
To Opening Stock 2,00,000 By Sales 13,50,000
To Purchases 5,80,000 Closing stock 2,00,000
Manufacturing
Expenses
1,95,000
Wages 2,24,000
Gross profit c/d 3,51,000
Rs. 15,50,000 Rs. 15,50,000
To Salary 65,000 Gross profit b/d 3,51,000
To Distribution exp 1,35,000 Interest On Investment 15,000
To net profit c/d 1,66,000
Rs 3,66,000 Rs 3,66,000
Dr
Trading and Profit and loss
account For the year ending 31st
march 2017
C
r

19. Balance Sheet As on 31st march
2017
Liabilities Amount Assets Amount
Capital 7,36,000
Add net profit +1,66,000
9,02,000
Less Drawings - 2,00,000 7,02,000
Land & building 2,37,500
Less Depn: -23750
2,13,750
Creditors 1,20,000 Machinery 99,000
Less Depn -9,900
89,100
Investments 2,00,000
Debtors 1,80,000
Preliminary Exp 18,000
Less Written off -3600
14,400
Cash in hand 1,24,750
Rs 8,22,000 Rs 8,22,000

20. PRODUCT LIFE
CYCLE
Introduction stage:- Start manufacturing candles
Growth stage :- Potential buyers get attracted with increased profits.
Maturity stage :- Have own outlets
Decline stage :- Start a joint venture/ tie up with event companies or
decorators.

21. Conclusio
n
The Risk Factor is that it may take time to beat the competitors market.
But the market of the candle is expanding and demand for the product is
increasing day by day. The return in this business is also satisfactory.
At last it can be said that future of the product is very bright.