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Business plan


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Business plan

  1. 1. prepared by:- Javiya Chandni A. sem 3rd Page | 1
  4. 4. INTRODUCTION It is a fact that any aim or target stays behind each.Activities performed by the human being are a bundle of desire and thiscreates curiosity in their mind. It was one of the dreams of my heart tomake the business plan on related to kitchenware item. With the change in environment and technology,people’s routine life also changed. Now in days in people have not sucha time for any work so they try to avoid that task which takes more timefor solution of this new kitchenware items come into existence. Trey full into this category because it is very usefulfor supply of tea, water, snack, coffee, etc. it is not possible without treyto give all above items simultaneously the guest. It is easily available inthe market with cheap rate. Page | 4
  5. 5. PROJECT AT GLANCE1. Name of unit :- Om Tray2. Address for communication :- 40 Dolatnagar society, Dolatpara, Junagadh-3620373. Type of unit :- small scale industry4. Form of organization :- Partnership firm5. Main product :- Tray6. S.S.I. Register No. :- with G I DC Junagadh7. Subsidies register no. :- with GI D C Junagadh8. Owner’s name & address :- Javiya Chandni A. 4ODolatnagar society, Dolatpara, Junagadh-3620019. Raw-material required :- Plastic-HPS Page | 5
  6. 6. PROMOTERS BIO-DATA PARTNER-1 Name :- Javiya Chandni A. Address :- 40Dolatnagar society, Dolatpara, Junagadh-362001 Age :- 22 years Qualification :- M.B.A. Experience :- 2 Year Financial Contribution :- 50% Duties and Responsibility :- Managerial PARTNER-2 Name :- Viramgama Dhara R. Address :- 41 Dolatnagar Society, Dolatpara Junagadh-362001 Age :- 20 years Qualification :- B.B.A. Experience :- 1 Years Financial Contribution :- 50% Duties and Responsibility :- In area of production Page | 6
  8. 8. INTRODUCTION My main product tray is the latest in trend it is uses indifferent tags. Some of the brands of the tray like as cello, standard, U-nic, A-one, reachest, etc. They are used in different ways. Somedifferent trays are as under. Tea Trey Water Trey Launch Tray Cold Drinks Tray Page | 8
  9. 9. JUSTIFICATION OF LOCATION The selection of an appropriate location enables theindustry to operate smoothly and with minimum cost wrong locationleads to wastages of efforts and talents of promoters. With consequentuncertainty in results. The location of a plant has a great on the successof failure of its operation. If selection of the site is not proper, then themoney invested in the factory building, plant & machinery etc. will bewasted and thus leading to organization losses further the cost oftransferring. The location from one place to and then would prove to bea costly affairs and causes problems which cannot be solved. Junagadh is proper in this respect. The location is quitesuitable and inappropriate, in all respect for our product; following arethe favorable point, which provides evidence for aforesaid statement.1. Land & Building:- It is prime need for the plant establishment wrongselection of land will become dangerous building also built as per theprocess layout of the plant. In Junagadh land will be available atcheaper rate in GIDC areas.2. Manpower:- Page | 9
  10. 10. For production, we require workers at cheaper rate, whenlabor costs are varied an industry decimates from its transport locationin promotion to the size of its labor co-efficient. In Junagadh, we canget the disadvantage of skilled labor and unskilled labor with reasonablerate.3. Transportation:- An industry is likely to be drawn first to these sites wheretransparent facilities are available at minimum cost, both in the case ofraw material and the places where the products can be marketed. As weknow that Junagadh is a big city we can easily all the transportationfacilities both by road and sail connection.4. Electricity:- Electricity is important as blood in the factory withoutelectricity best manned plants become useless. So that no such problemof electricity because in all the areas it is available easily.5. Water:- If man cannot live much without waters than how machinescan? In all the production process in Junagadh, Municipal Corporationprovides water to the factory and nearby Junagadh. There is a dam alsoso that water supply is become favorable. Page | 10
  11. 11. 6. Communication:- Communication is the link between producer and customer. Ifthere is some mistake in this link idea or message cannot transferredfrom one party to another. As Junagadh is mega city communicationfacility like cellophane, internet, etc. are easily available with cheaperrate.7. Government incentives:- The government has promoted the small sector by introducingpolicy measure so as to improve vitality and growth and to contribute itsmite fully to the Indian Economy Government provides promotionalmeasures like small scale industries board; assistance programmedpositive measures like credit grantee financial assistance technicalassistance and some other measures. Page | 11
  12. 12. ORGANIZATION CHART Page | 12
  13. 13. IMPLEMENTATION SCHEDULE The major activities in the implementation of the project unithave been listed here.  Preparation of project report selection size and SSI Reg. No.06 months  Procurement of finance, construction of factory building, procurement of machinery, requirement of staff etc. Page | 13
  14. 14. PRODUCT DETAILS Details about Machinery:- Machinery is needed for all the production process. Asmodern as the machinery, promoter can get as much advantage of it. Thedetails of machinery for the production tray as under, 1. Injection Molding Machine:- Page | 14
  15. 15. This is main machine help a lot in the production. The cost ofthis machine is near about 1000000 the capacity is 150 gram. Themachine need 16 nears power for handling. These machine 2 operatorsand 4 to 5 helpers are required. 2. Cooling Motor:- The cooling motor is needed at the time of production. Thesehelp the machine for remaining cool by supplying water. The cost ofcooling motor is 5000 approximately. 3. Cooling Tower:- The cooling tower is one the part of cooling motor, itregulator. The financing of cooling motor, the cost of cooling tower isRs. 1000 about. 4. Dye:-It is the important part for machine. It is prepared different shares as perthe requirement. As per the product need it is cost may be 50000 to100000. 5. Grinder Machine:- Page | 15
  16. 16. The task of grinder machine is to grind the wastage of the parochial. Sothat it will take for further in protection the wastage the cost of this isnear about Rs.10000 the power needed for it is house power. PRODUCTION PROCESS CHART Page | 16
  17. 17. PRODUCTION PROCESS Page | 17
  18. 18. They is the kitchen ware item so day to day the use of this isdone. The major component for it is plastic balls-hips. The plastic coloris used as per the requirement for the productions of 1200 kg raw-material requirement are as under. Quantity Size in gram Time spend 1000 kg 250 gm 28 days 100kg 75 gm 25 days 1. Raw-material:- The tray is a plastic product the raw-material required inform of plastic balls. The raw-material get form one of the biggestcompany reliance. 2. Inspecting:- After receiving the raw-material inspection is done on itthrough it is standardize products, inspecting is necessary to remove thefurther loss, here preventation is better than sure. 3. Melting:- After inspecting the raw-material it is mated in the machine.The machine’s capacity is 500kg in 1 day the operator is required. 4. Recycling:- Page | 18
  19. 19. Recycling is also important in recycling the wastage come throughmelting is proceeded again it make in the raw-material. In this the ratioof wastage and raw-material should be 2.25 kg. 5. Compressing:-In compressing the mpther is used for spread on the trey one to no zedsize meter is required for it is the work of art so that saved workers isrequired for it. 6. Inspecting:-After all the above process. Inspecting is done. In is related to thefinished goods. In any product is not fulfill the required standard ofquality it is rejected. 7. Packaging:-After inspecting packaging of the product is done first of all a singleprice is packed then all those are packed in the cartoons one cartoonscontain 500 pieces of trey. 8. Dispatching:-After packing the product is than dispatched through different channelsof distribution to ultimate endues. Page | 19
  21. 21. INTRODUCTION Marketing now a day has becomes important and complexthen before it is very essential to here a sound marketing system, whichincludes well selected distribution channel well worked attractiveadvertisement, reasonable as well as affordable price & above all a goodquality product.  Quality:-Our maximum emphasis is on quality. The quality of our product is notonly competitive because we known that more competitive is notsufficient for reliability we always to be one step ahead from others.  Price:-The price of our products is affordable to middle class people who areour target market our firm understand. “Value for money” very well anddo high sales it low marines is our motto. Page | 21
  22. 22. MARKET POTENTIAL Liberalized economic policies implemented by government ofIndia under able leadership of prime-minister and finance minister hasgiven new life sprit and boasted up various industry is plastic industrymoreover, due to increasing awareness and watch fullness of generalpublic. The use of plastic products increased considerably during recentyears. And at present there is very high market potential for such type ofproducts. Now a day plastic products like trey, coconut cutter, boxeschilly cutter, etc. have got and excellence market potential, people areturning towards plastic products and using more and more. These areincreasing demand in both urban and rural areas. Although there istremendous potentially of raw-material for the products in the regions.Thus there is tremendous potential for development of plastic productsproducing in their regions. Page | 22
  23. 23. FINANCEDEPARTMENT Page | 23
  24. 24. INTRODUCTION The finance function is the main function of any businessfirm without finance other functions are not possible, financialmanagement means a process of collecting utilizing and managing. Thefund effectively and economically. In any business the finance is done the worth of bloodwithout this all others have no importance and finance is very dynamicfield. In finance things change on daily basis, because of the growingimportance of money. The importance of finance functions has alsoincrease. Page | 24
  25. 25. FIXED CAPITAL DETAILS(A)Land:- Sr. particular Area Rate Value no. 1. Open land 400sqMt. 200sqMt. 80000 2. Land development exp. 1000sqMt. 650sqMt. 650000 3. Other expenses 100sqMt. 200sqMt. 20000 Total Value 750000(B)Details of Machinery:- Sr. No. Particular Value 1. Injection Molding Machine 500000 2. Dye 100000 3. Cooling water meter 10000 4. Grinder 8000 5. Compressor 12000 6. Cooling tower 10000 Total Value 640000 Page | 25
  26. 26. (C) Particular Area Rate Value 1. Raw-material Store 300Sq Mt. 500Sq Ft. 150000 2. Godown Store 100Sq Mt. 500Sq Ft. 50000 3. Process Area 600Sq Mt. 500Sq Ft. 300000 4. Finished Goods Store 200Sq Mt. 500Sq Ft. 100000 5. Machinery Spare 50Sq Mt. 500Sq Ft. 25000 6. Office Room 100Sq Mt. 500Sq Ft. 50000 7. Staff Quarters 200Sq Mt. 500Sq Ft. 100000 8. Water tank 100Sq Mt. 500Sq Ft. 50000 9. Other 50Sq Mt. 500Sq Ft. 25000 Total Value 1700Sq Rs.500 per 850000 Mt. Sq Mt.(D) Preliminary and pre-operating Particular Amt. Amt. 1. Preliminary Expenses 20000 20000 2. Pre-operating expenses Establishment Exp. 10000 Legal Exp. 15000 Construction Exp. 25000 50000 Total Expenses 70000 Page | 26
  27. 27. (E) Fixed Capital Cost of a Project:- Sr. no. Particular Value 1. Land 750000 2. Building 850000 3. Plant & Machinery 640000 4. Furniture & Fixtures 190000 5. Others Expenses 10000 Total Value 2440000 Page | 27
  28. 28. WORKING CAPITAL REQUIREMENT (A) Particular Days Quantity Value 1. Plastic Balls (HIPS) 28 days 1000Kg 150000 2. Plastic Balls (PP) 25 days 200 Kg 20000 3. Colour 27 days 1500Lt. 45000 4. Packing 30 days 30000 Total Value 245000 (B) Salary & Particular No. of Rate per Value Person month 1. Manager 1 10000 10000 2. Supervisor 2 3000 6000 3. Skilled Worker 6 2000 12000 4. Unskilled Worker 6 1200 7200 5. Watchman 1 1000 1000 Total before Bonus Salary 36200 +20% Bonus +7240 Total 43440 Page | 28
  29. 29. (C) Utilities:-Sr. no. Particular Amt. 1. Power 3500 2. Fuel 2500 3. Water 1000 Total Value 7000 (D) Other particular Value 1. Transport Changes 5000 2. Miscellaneous Exp. 3500 3. Rent 3000 4. Repair & Maintenance 2000 5. Postal & Stationery 1000 6. Telephone 3000 7. Selling Expenses 2500 Total Value 20000 Page | 29
  30. 30. (E) Total working Particular Amt. 1. Raw-material 245000 2. Salary & Wages 43440 3. Utilities 7000 4. Other Contingent Expenses 20000 5. Interest on Loan 105000 Total value 420440 Page | 30
  31. 31. TOTAL COST OF A particular Amt. 1. Total Fixed Capital 2440000 2. Total Working Capital 420440 Total Value 2860440 Page | 31
  32. 32. SOURCES OF FINANCE Particular Own SBI Total 1. Land 350000 400000 750000 2. Building 500000 350000 850000 3. Machinery 340000 300000 640000 4. Furniture 200000 - 200000 5. Working Capital 420440 - 420440 Total Value 1810440 1050000 2860440  Interest (Means of Finance) particulars Interest Rate Amt. 1. SBI Loan 10% 1050000 2. Own Capital 1810440 Total 2860440 Page | 32
  33. 33. PROFITABILITY ANALYSIS (A) Total sales:- particular quantity Rate Amt. 1. Tray:- Tea Tray 20000 100 2000000 Lunch Tray 36250 80 2900000 Cold drink’s Tray 12000 50 600000 Total 5500000 (B) Cost of Production:- (1) Total Recurring Cost (420440 × 10) 4204400 (2) Depreciation:-Sr. no. particular Int.Amt. Total Amt.1. Building @ 10% 85000 8500002. Machinery @15% 96000 6400003. Furniture & Fixtures @ 10% 19000 190000 Total 2000000 Page | 33
  34. 34. (3) Interest:-Sr. no. Particular Total Amt. Amt. 1. S.B.I. loan @ 10% 1050000 105000 2. Own Capital @ 10% 1810440 181044 Total 286044 Total cost of production 469044 (4) Profitability Analysis:-Sr. no. particular Amt. 1. Sales 550000 2. Cost of production 469044 profit 80956 Page | 34
  35. 35. PROJECT SUMMARY particular Amt. Total Amt.Total sales - 550000Cost of production Raw-material 245000 Salary & Wages 4344 Utility 700 Sales Exp. 2500 Depreciation 20000 Interest 28604 Rent 300 Miscellaneous Exp. 350 Preliminary Exp. 7000 Other Exp. 160246 469044Gross Profit - 80956Less: income Tax 30% - 24287Net profit After Tax - 56669 Page | 35
  36. 36. FUND FLOW STATEMENT Sources Amt. Application Amt.Fund from operation 500000 Increase in W.C. 100000Issue of share SBI 105000 Purchase of 10000loan InvestmentSale of investment 100000 Machinery purchase 640000Sale of fixed Assets 885000 Purchase of Land 750000 Total 1500000 Total 1500000 Page | 36
  37. 37. BREAK EVEN ANALYSIS Particular Amt.Sales 550000Less Variable cost Raw-material 245000 Power 350 Wages 4344 Packing material 20000 Selling expenses 2500 Other expenses 129250Total variable exp. Contribution 401444Less Fixed cost Rent, Taxes, Insurance 11000 Administrative Exp. 8000 Depreciation 20000 Interest 28600Total Profit Exp. 67600(Net Profit)Profit Before Tax 80956-Tax 24287Profit After Tax 56669 Page | 37
  38. 38. RISK FACTORS & FUTURE PLAN (A) Risk Factors:- In this area we find competition everywhere in every field so, itmay be risk factor for one unit, Fluctuation in material prices may affect the product In the initial years industry will demand substantial efforts time and money in exploring market potential. Apart from this government rules and regulations may affect our unit adversely in the future. (B) Future Plan:- The future plans of the industry are as follow; To increase the profit of the company To give maximum facilities to the market To implement the near technology in the business near future To launch a new product. Page | 38
  39. 39. CONCLUSION I must say that this is a great experience for the student of.M.B.A. it will enhance the entrepreneur skill among the student. I gotknow ledge about the implementation to the production process and tothe selling of the product. I also collect the information about plasticindustry like the same and it was a great experience. I wish and hope that company get more success and achieve itsall desired goal in near future. Page | 39
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