1. TABLE OF CONTENTS
Page
Sr. No. Particulars
No.
1.Introduction To SSI
2.Project At A Glance
3.Bio data Of Partners
4.Basis & Presumptions
5.Organization Structure
6.Implementation Schedule
7.Location Justification
8.Portrait Of Products
9.Details Of Raw Materials
10. Marketing Exercise
10.1. Demand Analysis
10.2. Segmentation
10.3. Pricing Decision
10.4. Distribution Decision
10.5. Positioning
10.6. Analysis of Competitors
10.7. Promotion Decision
11. Production Process
12. Financial Aspects
1

2. 12.1. Section – 1 Fixed Capital Details
12.2. Section – 2 Working Capital Details
12.3. Sources Of Finance
12.4. Interest On Capital
12.5. Depreciation Details
12.6. Cost Of Production
12.7. Sales Turnover
12.8. Fixed Cost
13. Profitability Analysis
14. Break Even Analysis
15. Computation Of Ratios
16. Risk Factor
17. Future Prospects
18. List Of Suppliers
2

3. INTRODUCTION TO SSI
Small scale industry has place of pride in our economy. It is the base
for medium and large scale industry helps in earning foreign exchange, helps
generating employment opportunities, and many more benefits are available
to the economy.
Hence, the govt. has introduced the Small & Medium Enterprise
Development Bill 2005 in the Lok Sabha, seeking to enhance the investment
cap for small scale units from Rs. 1 crore to rs. 5 crore. The bill aims to
consolidate the laws governing small & medium enterprises. It also seeks to
extend progressive credit facilities to SME’s in line with the guidelines laid
out by the RBI.
In a move to enable small enterprises to grow, the bill provides that
more than 50 employees can be freed from the purview of Labour laws
including the Employer’s Liability Act, 1938.
This report is made within the boundaries of SSI with the intense to
acquaint the students with the functions of entrepreneur.
3

4. PROJECT AT A GLANCE
Name of the unit:-
KR Dairy Farm
Address for communication:-
“KR dairy form”
6, Jagnath plot,
Dr. yagnik road,
Rajkot.
Type of the Unit:-
Partnership firm
Location of the unit:-
“KR dairy form”
Mavdi main road,
Opp.fuliya hanuman
Rajkot
Name of the Product:-
GULAB JAMUN
Partner’s name:- Vora Khushbu
Gami Rujuta
4

5. BIODATA OF PARTNERS
BIODATA OF PARTNER-1
Name:- KHUSHBU VORA
Address:-“Kashyap”
Laxmi nagar,
Near old Alfa school,
Junagadh.
Education qualification:-M.B.A with H.R.
Age:-20 years
Experience:-Fresh
Finance contribution:-50%
BIODATA OF PARTNER:-2
Name: RUJUTA GAMI
Address:- kalawad road,
Near Atmiya college,
Rajkot.
Age 25 yrs
Experience:- 1yr
Finance contribution:- 50%
5

6. BASIS & PRESUMPTION
1. It had been taken into consideration that the unit will work for 8 hours a
day for 300 days in a year. In case of emergency the overtime will be
carried out as the production is based on orders.
2. To achieve full plant capacity the trial production will be carried out for
15 to 20 days and by taking 6 to 7 samples.
3. Labor and wages mentioned as per the prescribed minimum requirement
of them
4. Interest rate at 9% for fixed and 13% for working capital is considered in
the project profile
5. Margin of money will very from 30 to 35% depending upon the labor and
raw material available to the firm.
6. The costs of land, construction, charges, machinery and equipments, raw
materials and consumables, other expenses etc indicated in the profile are
based on those prevailing at the time of preparation therefore they are
subject to necessary changes from time to time based on local conditions.
6

7. ORGANIZATION STRUCTURE
Organization is a group of people working together cooperatively
under authority toward achieving and objectives that manually benefit the
participants and organization.
The superior subordinate relationships are defined by organization
charts, which are formal documents that indicate the chain of command and
titles that have been assigned to the managers and other personnel.
7

8. IMPLEMENTATION SCHEDULE
Implementation schedule means actual time required to start the
production process. The major activities in the implementation of the project
have been listed & systematic implementation of project may take around 11
to 12 months for completion.
Sr. No. Activities Time Period
1 Survey for collection of data in respect 2 months
of demand, raw material, including
power and fuel availability of
technology, pollution control
2 Arrangement for margin money 1 month
3 Preparation of project document and 1 month
registration
4 Financial assistance 2 months
5 Selection of site & development of land 2 months
6 Make shift office 12 months
7 Electricity, fuel and water tying up for 2 months
availability
8 Selection of machines and procurement 1 month
9 Selection of raw material and 8 days
procurement
10 Recruitment of staff and labor 15 days
11 Registration for SSI 15 days
12 trial production 20 days
8

9. LOCATION JUSTIFICATION
In recent years the concept of industrial location has received much
importance & closer attention for any newly started manufacturing business.
Location of any industry pays a dominant role in success for failure of the
company.
Only best selected location on one side can earn variety of benefit and
any mistake in selection of location on the other side can result into a great
loss. Therefore before selection of the plant location promoters have to
check the various have to check the various alternative locations in terms of
loss contribution and environment too.
Availability Of Raw Material
All the required raw materials are easily available locally at market
rate for preparing GULAB JAMUN at proposed location.
Proximity To The Market:
Proximity to the market means nearness to the market. From
marketing point of view, we have very enrich and expanding market for our
products. The most important benefit of nearness to the market is you can
closely be attached with the current market position of demand, products,
competitors, price, consumer beliefs and attitudes towards the products and
9

10. many more: we have selected our location on mavdi main road where the
penetration of dairy products is lesser and only competitors of gulab jamun
in rajkot. So we have a very good market as rajkot is the centre for
saurashtra and a highly developing city. We have a highly developing city.
We can create, maintain and develop the demand easily and profitably.
Many hotels are also consuming the sweets so, the large and beneficial
potential is found out.
Availability Of Manpower
Manpower is the heart to run any kind of activities. For effective
running of any firm and activating maximum production & to have at least
cost, labor is required. All skilled and unskilled manpower can easily be
obtained near by the area at cheaper rate and also with the basic required
knowledge to operate.
Availability Of Manufacturing Services
Manufacturing services are the core necessity for efficient and
effective production. Water electricity and other infrastructure facilities are
included in it. As for as our location is concerned water and electricity is
easily available for 24 hours at very economical rate and other facilities are
also available easily as it is inclusive in the city.
10

11. TRANSPORTATION FACILITIES
By selecting this plant location for sweets will be beneficial more for
transportation mode rate and way we won’t have our own transportation
vehicles, the distribution of sweet will be carried out through transportation
contract will private companies. Which are easily available at economic rate.
Personal Factory:
We have selected this unit because of above all reasons and in
addition, our personal influence for the selection, as we want to develop this
area by anyway if we can society the society in our earlier stage of business.
Other Ancillary Services:
Other ancillary services like banking, insurance, technically
assistance, warehousing etc are easily available at feasible rate.
Thus viewing all phases of the location, it seems to be most
appropriate location for the firm so we considered it as very favorable &
ideal location for us.
11

12. PORTRAIT OF PRODUCTS
“GULAB JAMUN”, the name itself suggests that they give sweetness
to those people whom sweets are for away to reach the products is made for
diabetics and diet conscious people.
The concept of GULAB JAMUN come into the Rajkot before many
years. This is the segment where only a few competitors and great potential
for expansion. We have done search and surveys for check in the demand
and trend of the people towards sweets and from them GULAB JAMUN and
we came to know that only 20% consumers prefer GULAB JAMUN in the
general time or in occasions. But by considering today increased number of
diabetic patients and the awareness among the people, we found and larger
& great market for the same.
We want to start GULAB JAMUN for diabetic patients with the motto
of serving society and better and profitable way than the competitors. We
have entered in riche market the initial launching strategy of use will itself
our products quality i.e. delicious test convenient packaging, superior
quality, and nutrition, affordable price on time delivery or quick delivery.
12

13. We will produce product based on & main ingredients i.e. date, fig
and black raisins. The product is made from it and other in gradients like
cashew coconut powder, pista, almond and many more each product changes
comparatively high price than the general & common sweets before all are
made from dry fruits.
The products produced & their rate of each product give Items
ITEMS
Items Rate (per kg.)
DRY FRUIT GULAB JAMUN 400
GULAB JAMUN 320
BANGALI GULAB JAMUN 160
KESAR GULAB JAMUN 400
13

14. DETAILS OF RAW MATERIAL
Raw material is the precondition for production function. Qualitative
raw material effective processing and proper maintenance are milestones for
efficient production.
The main raw materials required for preparing GULAB JAMUN
DIFFERENT PRODUCTS are as follows
1Date
2Ghee
3Cashew
4Almond
5Fig
6Pista
7Black raisins
8Coconut powder
And other required materials are
1Paper boxes
2Plastic packets
3Plastic papers
4Containers (for loose selling)
14

15. MARKETING EXERCISE
Demand Analysis
The demand of the GULAB JAMUN in current market specially in
saurashtra is 12 % where demand of the general sweet is larger than it but
the future potentially is grater in terms of demand.
Supportive Basis For Growth Is Demand:
Increase the number of marriage occasion in the society growth rate
10 %
Current Consumption Pattern
Product are being consumed on routine basis.
Consumption Size
Consumption size for GULAB JAMUN is comparatively small than
general sweets
Pick Points With Reference To Demand
Festivals time and marriage seasons.
15

16. SEGMENTATION
The market segmentation of GULAB JAMUN may be classified as
under:
Geographical Segmentations:
As GULAB JAMUN made mainly from the dry fruit and pure
materials having very high prices so they are consumed by the class people
living in Kalawad Road, Dr. Yagnik Road, University Road, Gondal Road,
Dhebarbhai Road, Mavdi Circle with special reference to Rajkot only and
other regions where the rich people are living
Demographic Segmentation:
1Age group – above 30 years
2Income – high earn
3Personalities- rich & aristocrat personalities
4Social class- higher middle & upper class
5Education- highly educated and well awarded
6Behavioral – well awarded
Psychological Segmentation:
Beliefs & attitudes – favorable, positive
16

17. PRICING DECISION
Objectives
1To earn desirable profit
2To society the society
3To fight with competitors
1To create brand equity
Influencing Factor
1Cost of raw materials
2Cost of production
3Prevailing demand
4Competitors price
Pricing Method
1Cost plus pricing
17

18. DISTRIBUTION DECISION
Channel
1Distributors – retailers- end users
2Hotels & restaurants
3Wedding planners
4Event managers
POSITIONING
Product positioning
(Note: * The product GULAB JAMUNs are expensive and nutritious for the
end users.)
By doing comparative study of the above map, we can make out our
close competitors are GULAB JAMUN without mava, use of shingola’s
flour.
Brand Positioning
The brand positioning map of the SAI brand is as follows:
18

19. ANALYSIS OF COMPETITORS
The main competitors of SAI GULAB JAMUNs are…
1Shiv Shakti Sweets
2Sweet Palace
3Bengal Sweets
These are the main competitors providing sugar free as well as general
sweets the concept of sugar free sweets came on rajkot before 3 years so
there is not keen competition but oligopolistic market competition
Competitive strategy
To compete with the existing competitors company will create
awarness among the people that such kind of qualitative taylor made and
nutritious products are available. Effective advertising through sign boards
hoardings and print ads in various materials effective distribution strategy is
being adopted
Competitive advantage
1The quality of the sweets,
2It’s delicious taste,
3Effective pricing policy,
4Efficient distribution channels.
19

20. Promotion Decision
Objective
1Create awareness among mass for GULAB JAMUN & specially among
patients
2Brands awareness
3Brand preference
4Brand loyalty
Budget
5Rs. 10,000 per month
Tools
6Signboards,
7Hoardings,
8Printed materials,
9Catalogs,
10Local magazines,
11Other materials of social groups.
20

21. PRODUCTION PROCESS
For making up of GULAB JAMUNs mainly 3 dry fruits are used for
a base i.e. Date, fig & Black grapes
Preparation Method
To prepare date based GULAB JAMUNs firstly make it seed less
then to crush it in mava maker and to fry it on gas stove with pure ghee.
Then after to cut and sliced the dry fruits according to their name and given
specification like cashew almond pista and coconut powder etc add to the
fried date and again fried it in maska machine then give them different
shapes according to their name & specifications give to them. To freeze the
mis refrigerator for 3 to 4 hours now date based any item is ready to eat or
serve.
Date Based
The items which are made from the date are:-
1Dry fruit roll cut
2Manpasand
3Sangam slice
The other fig based and black raisins based items also require the
same process as date based
21

22. Fig Based
The main items made from fig based are:
1Angir kasata
2Angir Roll
3Angir Dryfruit halva
4Kaju Angir Roll
5Man pasand
6Angir slice
7Angir badam halva
Black Raisins Based
8Dry fruit roll cut
9Kishmis kamal
10Kishmis kasata
11Kishmis roll
12Manpasand
13Sangam katri
14Badam kishmis
15Kaju kishmis etc
22

23. Financial Aspects:
Fixed capital Details
(Section - I)
(a) Land And Building
Sr. Particulars Amount
No. (Rs.)
1 Land : 2,500,000
500 sq. mtrs. @ Rs. 5000 per sq. mtr.
2 Building: 1,500,000
Work shed: 200 sq. mtr. @ Rs. 7500
Storage: for raw material 20 sq. mtrs. And for
finished goods 20 sq. mtrs.
3 Furniture: 250,000
Electrification and fixtures 150,000
Total 4,400,000
23

24. (b) Machineries & Equipments
Sr. no. Description Qty Price (per unit) Total Price (Rs.)
1 Mava Maker 4 80,000 320,000
2 Dry Fruit Cutter 2 15,000 30,000
3 Maska Machine 1 25,000 25,000
4 Slice Machine 2 20,000 40,000
5 Refrigerator 2 110,000 220,000
Total 11 250,000 635,000
(c) Statement Showing Total Fixed Cost
Sr. No. Particular Cost (Rs.)
1 Land building and furniture 4,400,000
2 Machineries and equipments 635,000
Total 5,035,000
24

25. Working capital details (Section – II)
(a). Personnel (Per month)
Sr. Designation No.s Salary Total
No.
1 Manager 1 7,000 7,000
2 Supervisor 2 5,000 10,000
3 Accountant 1 4,500 4,500
4 Stock Keeper 1 2,500 2,500
5 Counter Person 1 3,000 3,000
6 Skilled Workers 4 2,200 8,800
7 Unskilled Workers 6 1,800 1,800
Total 16 46,600
25

26. (b) Raw materials
Sr. No. Particular Qty (kg.) Rate (per kg) Total
1 Ghee 30 140 4,200
2 Cashew 100 240 24,000
3 Almond 70 480 33,600
4 Fig 50 280 14,000
5 Date 70 35 2,450
6 Black Grapes 40 140 5,600
7 Coconut 20 75 1,500
Powder
8 Pista 20 280 5,600
Total 400 90,950
(c). Utilities (per month)
Sr. No. Particular Total Value
(Rs.)
1. Power – per unit Rs. 4 7000
2. Water 5000 ltrs 2000
3. Gas 125 bottles @ 320 (aprx.) per no. 40000
Total 49000
(d) Other expenses (per month)
Sr. No. Particulars Value (Rs.)
1 Postage & Stationary 500
2 Telephone 3000
3 Repair & Maintenance 2000
4 Transportation Charges 15000
5 Advertisement 20000
6 Insurance 2000
26

27. 7 Miscellaneous Expenses 5000
Total 47500
(e). Statement showing total working
capital (monthly)
Sr. NO. Particulars Cost
1 Personnel 46600
2 Raw Materials 90950
3 Other Expenses 47500
4 Utilities 49000
Grand Total 234050
(f) Working capital Requirement
(for 3 months)
Rs. 2 34 050 X 3 Months = Rs. 7, 02, 150
Total Capital investment
Sr. No. Particulars Value (Rs.)
1 Fixed Capital 5035000
2 Working Capital 702150
Total 5737150
27

28. Sources Of Finance
Sr. No. Particulars Contribution Value
1 Owned Capital 35% 2008002
2 Borrowed Capital 65% 3729147
Grand Total 5737150
Interest On Capital
Sr no. Particulars Rate Value (Rs.)
1 Owned Capital 9% 180720
2 Bank loan 12% 447498
Total Interest 628218
Depreciation Details
Sr no Particular Gross Rate Depreciation Net Block
block
1 Building 1500000 10% 150000 1350000
2 Furniture 250000 8% 20000 230000
3 Machines & 635000 10% 63500 571000
Equipments
Total 2385000 233500 2151500
28

29. Cost Of Production
SR NO. Particulars Value (Rs.)
1 Total requirement of working capital 2808600
2 Depreciation on Building 150000
3 Depreciation on machinery 63500
4 Depreciation on Furniture 20000
5 Interest on Bank Loan 447498
6 Interest on owned Capital 180720
Total cost 3670318
Sales Turnover (Monthly):
Yearly Sales Turn over
Sr. no. Particular Qty Rate Amt
1 Date Based 300 500 150000
2 Black Raisins Based 250 600 150000
3 Fig Based 400 550 220000
Total 950 1500 520000
Sales =520000 X 12 Months
= Rs. 62,40,000
Fixed Cost
Sr. No. Particulars Value (Rs.)
29

30. 1 Depreciation on building 150,000
2 Depreciation on furniture 20,000
3 Depreciation on machinery 63,500
4 Interest on bank loan 447,498
5 Interest on owned loan 180,720
6 Insurance 10,000
7 40% Salary & wages 18,640
8 40% Other Expenses 19,000
Total 909,358
30

31. Profitability Analysis
Particulars Amount (Rs.)
Sales volume 6240000
Less: Cost of production [Excluding interest] 3,042,000
Earning before Interest & Tax 3198000
Less: interest on Capital 628,218
Earning before Tax 2569782
Less: income tax at 35% (assumed) 899424
Profit After Tax 1670358
Profit
Profitability = ---------- X 100
Sales
936577
= ---------- X 100 = 15%
6240000
31

32. Break Even Analysis
Break even analysis is widely used technique to study cost volume
profit relationship. The narrow interpretation of the term break even analysis
refers to a system of determination of that level of activity where total cost
actual total selling price.
In nut-shall, BEP means like level of output of sales at which no profit
no loss is activated.
Break even point for GULAB JAMUNs
Fixed Cost
BEP = ------------------- X 100
Fixed Cost + profit
909,358
= ---------------------- X 100
909,358 + 936577
= 49.26 %
32

33. Computation Of Ratios
Return on Investment
Net Profit 936577x 100
ROI = ----------------- X 100 = ---------------
Total Investment 2,737,150
= 34.21%
Return on Fixed Assets
Profit 936577 X 100
= ----------- X 100 = ----------------
Total Fixed Assets 5,035,000
= 18.60%
33

34. Risk Factors
For inception of any activity, the risk factor is involved with itself.
Risk factor is like living without being born. So, before starting any
organization or unit the entrepreneurs have to keep in mind the weak as well
as threatening feets of the firm.
The risk factors involved with Utsav Dairy Farm may as follows:
1The demand of the products may not be generated as predicted.
2The firm will have to face strong competition.
3The promoters of the firm are not much experienced in the field of
entrepreneurship and in the food items.
4Consumers will not be got much well aware about the products.
5In the very first year the company may face loss.
34

35. Future Prospects
The modern world is fast growing, it is expanding considerably in
food habits. New innovation of yesterday is old for today, it is a past and
tomorrow is a present.
The following are the future prospects of my unit:
1Expansion in existing tem with different flavors and ingredients
2Expansion in existing market and cover the entire Gujarat.
3Diversifying in other sugar free food items.
4Development of various branches whole over the Gujarat.
35

36. List Of Suppliers
1.Ambika machines,
Rajkot Highway,
Saverkundala.
2.Rathod machines
6 Mavdi Plot,
Rajkot.
3.Gayatri Refrigerator
Kalawad Road,
Kotecha Chowk,
Rajkot.
4.GAS
Gujarat Essence.
Rajkot.
36

37. P&L account for 3 years
Particular 1st Year 2nd Year 3rd Year
Sales 6240000 6864000 7550400
Net Sales / Income (A) 6240000 6864000 7550400
Manufacturing Exp.:
Raw Materials 1091400 1200540 1320594
direct wages 265200 291720 320892
Utilities 588000 646800 711480
Repairs & Maintenance 24,000 26400 29040
Total Manu. Exp. (B). 1968600 2165460 2382006
Gross Profit (A-B) (C) 4271400 4698540 5168394
Adm. Selling Exp.
Telephone 36,000 39,600 43,560
Postage & Stamp Duty 6,000 6,600 7,260
Miscellaneous Exp. 60,000 66,000 72,600
transport exp. 15,000 16,500 18,150
Salary 294000 323,400 355,740
Depreciation 2151500 2,366,65 2,603,315
0
Insurance 24,000 36,000 36,000
Interest
Own Capital 190720 190720 190720
Borrowed Capital 447498 447498 447498
Total Adm. Ex. (D) 3,224,718 3,492,96 3,774,843
8
Operating Profit (C-D) 1,046,682 1,205,57 1,393,551
2
37

38. (Less) Tax 110,105 421,950 487,743
Balance Sheet for 3 years
Particulars 1st Year 2nd Year 3rd Year
Capital Liability
Own Capital 2008002 2008002 2008002
(+) Int. on Capital
688218 688218 688218
(+) Net Profit 936577 783622 905808
3632797 3479842 3602028
Borrowed Loans 3729147 3729148 3729149
Creditors 250000 270000 260000
Total 7611944 7478990 7591177
Property Assets
Fixed Assets
land & Building Less Dep. 1500000 1350000 1215000
Machine Less Dep. 635000 571500 514350
other fixed assests less dep. 250000 230000 211600
debtors 702150 1167665 1167665
Cash and bank 4,524,79 4,159,825 4,482,562
4
Total 7611944 7478990 7591177
38

39. Cost sheet for 3 years
Particulars 1st year 2nd year 3rd year
Raw Material Consumed
Op. Stock of Raw Material -
Purchase 1091400 1200540 1320594
Cost of R.M. Consumed 1091400 1200540 1320594
Direct Wages 265200 291720 320892
Utilizes 588000 646800 711480
Prime Cost 3036000 2139060 2352966
Factory Overhead
Salaries 294000 323400 355740
Dep. On Building & Machine 150000 165000 181500
Maint. & Repairs of Machine 24000 26400 29040
Work Cost. 3504000 2653860 2919246
Office / Adm. Overhead
Telephone 36,000 39600 43560
Postage & Stamp Duty 6,000 6600 7260
Insurance 24,000 26400 29040
Mis. Expenses 5,000 5500 6050
Interest on Cap. 688218 757039.8 832743.78
Depre. On other fixed Asset. 20000 18400
Cost of Production 4,283,218 3,507,400 3,837,900
Selling & Dist. Overheads
transport exp. 15000 16500 18150
Cost of Sales. 5,888,814 6,377,852 6,922,277
Sales 6270000 6897000 7586700
Profit 381,186 519,148 664,423
39

40. A
BUSINESS PLAN
On
GULAB JAMUN
Prepared By
KHUSHBU VORA
M.B.A. Sem-III
Roll No. 104
Submitted To
Dr. Rajesh Patel Sir
Academic Year
2010-2011
Name of Institute
N. R. Vekaria Institute of Business Management
Bilkha Road,
Junagadh.
40