Marketing Management Business Plan_My Sweet Creations
Wafer biscuties
1. BUSINESS PLAN ON
PREPARED BY :- Baldha Vishal k.
CLASS :- MBA 3RD SEM
YEAR :- 2010 – 2011
ROLL NO. :- 06.
COLLEGE-
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2. N R VEKARIYA INSTITUTE OF BUSINESS MANGEMENT
STUDIEIS JUNAGADH
SUBMITTED TO-
DR. RAJESH PATEL
DECLARATION
I, the undersigned “BALDHA VISHAL K.” the student of MBA
3RD SEM. hear by declare the business plan presented in this report is
my own work.
To the best of my knowledge, this work has not been
previously submitted to any other university for any examination.
Date:- Signature
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3. Place: - junagadh (Baldha Vishal k)
ACKNOWLEDGMENT
It is really a matter of gratification for me to prepare a
business plan. At this stage project report is an essential part of learning
and entrepreneur prepares it before he starts his actual firm, project
report is very helpful developing entrepreneurial skill. It makes the
entrepreneur aware about the aspects, which are to be considered, and
giving important when starting a new firm. It considers all aspects from
registration of the firm to the forecasting of future profit and allocation
of resources.
And also I heartily thanks towards to my Director Dr Rajesh
Patel, my project guide, and my almightily my god, parents and my
classmate for providing me the moral support to complete the project
work successfully.
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4. Date:- Signature
Place: - junagadh (Baldha Vishal)
PREFACE
As a part of MBA., syllabus we have to prepare a business
plan of any product, which is under small-scale industry. The aim of
preparing such a Report is to make aware each and every aspect, which
has to be considering while commencing a firm. This work of making
report provide us the guideline that, what are the essential featured to be
considered while studying a small business and it is also useful for the
students who want small unit after completion of MBA and it is also
urgent need for substituting the rational management techniques by
specific system of management.
I have selected Wafer Biscuit because I think there is a good
market for Wafer Biscuit and there are also future prospects of
exploiting the market.
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5. Signature
(Baldha Vishal K)
INDEX
SR. PARTICULARS PG.NO.
1 Project at Glance 5
2 Justification Of Location 10
3 Manufacturing Process 15
4 Financial Detail 17
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6. PROJECT AT GLANCE
Name of the unit :- GOPAL wafer biscuit
Address : - 2, Metoda G.I.D.C., Phase no. 11
Gate no: - 3, Metoda. Dist. Rajkot
Ph.- (02827) 257222/23.
Fax (02827) 257326.
E-mail- GOPAL@yahoo.com
Type of the unit :- Partnership firm register under
Partnership act. 1932
Partners :- 1) Baldha Vishal
2) Rohit Savaliya
SSI Registration no. :- Application has been made
Subsidy Registration No. :- Application has been made
Type of industry :- Food industry
Production :- 400 Tones
Fixed capital :- 31,71,000
Total capital :- 54,58,440
Working capital :- 19,87,440
Return on capital :- 34.17%
Break-even point :- 49.18%
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7. PARTNER’ S BACKGROUND
PARTNER - 1
Name :- Baldha Vishal K
Age :- 24 years
Address :- “Shree Hari”
5-Punchvati Soc. ,
Kalawad Road,
Rajkot 360 005
Qualification :- MBA (Fresher)
Specialization :- Finance
Financial contribution :- 50 %
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8. PARTNER - 2
Name :- Savaliya Rohit C
Age :- 24 Years.
Address :- “Sagar”
2-Geetanjali Park,
Rajkot-360002.
Qualification :- MBA (Fresher)
Specialization :- Finance
Financial contribution :- 50 %
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9. Organisation structure
proprietor
Production Marketing
Department Department
Material Agents Salesmen
manager
Inspector and
workers
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10. PRODUCT & its USES
Wafer Biscuits are made from wheat flour and some other ingredients are
added depending upon the variety to be produced. They are of many sizes,
varieties and flavors. Wafer biscuits would have two wafers - like layers and cream
will be stuffed between these two layers to form a sandwich-like biscuit. This is a
versatile product with good market prospects.
Today the production of wafer biscuit in the country is estimated 15 lakh
tones of which organization sector accounts for 1.75 lakh tones and the balance of
small scale has played a dominant role in meeting the increasing demand as the
manufacturing of wafer biscuit is reserved for the small sector.
Wafer biscuit are used as snack breakfast and it continues considerable share
in ice cream cones and also many other ways. The wafer biscuit are produced in
large amount.
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11. MARKET POTENTIAL
The consumption rate of wafer biscuits is increasing considerably and also
the popularity of the snake food is growing day by day wafer biscuits have
emerged as potential snack food. It also has become part of breakfast and ice
cream. There is no. of organization as well as unorganized groups are already there
is in market catering to the need of the house, railway and canteen cinema, airport
etc. and the many other places still there is huge amount of the demand for this
product. In interior and remote placed in different parts of country.
The data and its analysis revels that wafer biscuit have good market and
there are further possibilities of expanding and exploiting market.
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12. JUSTIFICATION OF LOCATION
Location is the prime factor to be considering for starting a new business.
The location should be decided by considering all factors and making independent
analysis of each variable separately through cost benefits. It is also said that
looking to the product and its use the district headquarters will be ideal for the
location of this project.
Rajkot is proper in all this aspect. The actual place of the location is quite
suitable and appropriate in all respect for our product. Following are the reason for
selecting the location.
• Market :-
From marketing point of view, we have best and encouraging market
for our product. Market for wafer biscuits is increasing day by day
and it is also used by different people different time and different
places and it is also available for very reasonable cost.
• Labor:-
Labor is prime important foe any business. In Rajkot, there is no
problem about labor because as skilled and unskilled labor is easily
available and also available at cheaper rate.
• Transportation :-
Transportation is also necessary for any business. As we know Rajkot
is big city so transportation facilities available easily. We have the
hired some vehicles for delivery of biscuits.
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13. • Raw material :-
There is no problem of raw material for wafer biscuits. The main raw
material for wafer biscuits are maida and sugar, which is easily
available for all places.
• Availability of infrastructure Facilities :-
All I facilities like water, electricity, telephone, telegraph, postage etc
are easily available is for this location.
• Other facilities :-
Large number of facilities can be easily available here such as
subsidy, loans at cheaper rates and many more facilities this
developing area.
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14. Pricing Policy
Price is an important factor affecting the success of a firm. Pricing decision and
policy have direct influence on sales volume and profit of the business. Price
fundamental to all marketing efforts, pricing is the process or service in monetary
terms.
Pricing is an important decision that every company has to high price or low price
may create a bad reputation of the company. The price of a product is a crucial
decision.
My pricing policy will be cost + profit. Whatever expenses have incurred during
the manufacturing of the product is considered plus profit is too included,
competitors’ price will also be considered.
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15. Channel Of Distribution
The channel of distribution plays an important role in market activity in the
movement of flow of funds.
Channel of Distribution
The firm can use one level distribution channel
Producer
Agent
Consumer
OR
The firm may use zero level distribution channel.
Producer
Consumer
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16. MARKETING STRATEGY
Thus, the market is very vast and scattered. Yet another
positive aspect is increasing rural and semi-urban markets. Some of the
national brands are very well established but there are hundreds of local
or regional brands catering to the vast market and a new entrant would
have to ace this local competition. Good quality and competitive price
coupled with well-organized marketing network shall be the critical
aspects.
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17. Quality Commitment
Quality is the central theme of our business model. It binds
together all our activities with the final goal of providing our consumers
the benefit they expect from our brands at most affordable prices. We
establish exacting standards to define acceptability of material inputs
and end products. These standards are strictly met via exclusive dealings
with vendors and service providers with proven capabilities to meet our
stringent expectations.
These are managed by highly proficient, motivated and
empowered quality vigilance teams who ensure that stipulated quality
goals are routinely met.
Quality programmers at our principal manufacturing locations
conform to the ISO 9000 code. These have been evaluated and validated
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18. by independent accreditation agencies. As a conscious step to further
refine our quality capabilities and enhance results, we have adopted
detailed TQM practices.
MANUFACTURING PROCESS
It is conventional and simple. Various ingredients like wheat flour, starch,
sugar, salt, soda, vanaspati, preservatives, flavors and colors etc. can be procured
from sources. Initially, wheat flour, starch, salt, soda etc. are mixed with water in a
mixer and paste is formed. This paste is poured into pre-heated moulds and wafer-
like sheets are baked. Simultaneously cream is prepared in the planetary mixer by
mixing sugar, vanaspati, essence, colors and flavors and this cream is spread on
baked sheets to make sandwiches. Finally, they are cut into required size and
packed. The process flow chart is as follows:
Mixing of
Ingredients
Formation of Paste
Baking
Cooler
Preparation & spreading of
cream
Cutting
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20. TENTATIVE IMPLEMENTATION SCHEDULE
Period (in
Activity
months)
Application and sanction of loan 2
Site selection and commencement of civil work 1
Completion of civil work and placement of
3
orders for machinery
Erection, installation and trial runs 1
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21. MACHINERIES & EQUIPMENTS
SR. NAME OF MACHINERY QTY. RATE COST
1 Flour suffer 3 10,000 30,000
Planetary type mixer 3 12,000
2 36,000
(Cap. 100Kg. / Hr.)
Automatic Biscuit cutting &
3 Punching Machine Fitting with 2 60,000 1,20,000
Totally molder
4 Electronic Banking oven conveyer 2 45,000 90,000
5 Machine for sweet cream biscuit 1 19,500 19,500
6 Cooking conveyer 1 45,000 45,000
7 Oil spray 1 20,000 20,000
Try trolleys and other accessories 2 8,000
8 16,000
etc.
9 Packing machine 1 23,500 23,500
Total 4,00,000
Add electrocution,Installment etc. 25,000
Total 4,25,000
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22. PRELIMINARY AND PRE-OPERATIVE
EXPENSES
Particulars
SR. COST
1 Lab. Equipment 50,000
2 Electrification and installment 78,500
3 Cost of tools / Fixtures 30,500
4 Cost of office equipments 12,000
5 Legal expenses 10,000
Total 1,81,000
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23. FIXED CAPITAL STATEMENT
SR. COST
Particulars
1 Land & Building 25,00,000
Machinery & Equipments
2 4,25,000
Preliminary Expenses
3 1,81,000
Computer with printer
4 65,000
Total
31,71,000
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24. REQUIRED OF RAW MATERIAL (Per Month)
Qty. Rate
(In (Kg.)
SR. Particulars Rs.) Total
1 Maida Flour 12,000 18 2,16,000
2 Sugar 3,000 15 45,000
3 Vegetable flat 4,000 14 56,000
4 Misc. item 4,000 25 1,00,000
- Milk powder
- Salt
- Yeast
- Edible color
- Flavor
- Golden system
- Chemicals
5 Packing material 40,000
Total 4,57,000
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27. WORKING CAPITAL REQUIRED (Per Month)
SR. COST
Particulars
1 13,71,000
Raw Material ( 4,57,500 * 3 )
2 Salary (1,56,480 * 3) 4,69,440
3 Other Expenses ( 49,000 * 3 ) 1,47,000
Total
19,87,440
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28. TOTAL CAPITAL INVESTMENT
Particulars
SR. COST
1 10,00,000
Land
2 Building 15,00,000
3 Furniture 3,00,000
4 Machinery & Tools 4,25,000
5 Preliminary Exp. 1,81,000
6 Computer with Printer 65,000
7 Working Capital (For 3 months) 19,87,440
Total 54,58,440
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30. SOURCES OF FINANCE (Per Month)
Particulars
SR. COST
1 Owners Contribution 25,00,000
Long Term Loan ( IDBI )
2 10,00,000
Bank Loan
3 8,00,000
Total
43,00,000
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31. DEPRECIATION
Value Rate of
SR. Particulars Dep. Cost
4,25,000 12%
1 Plant & Machinery 51,000
10,00,000 10%
2 Land 1,00,000
15,00,000 10%
3 Building 1,50,000
3,00,000 7.5%
4 Furniture 22,500
Total
3,23,500
Depreciation will be charge at straight-line method. Pre expense will be written
by1/10th portion every year.
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32. COST OF PRODUCTION (Yearly)
Particulars
SR. COST
Yearly Requirement of working capital
1 (19,87,440 * 3) 59,62,320
2 Total Depreciation 3,23,500
3 Int. on fixed capital
On owners capital @ 10% 2,50,000
On loan from IDBI @ 12.5% 1,25,000
On Bank Loan @ 15% 1,20,000
Total 67,80,820
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33. ANNUAL FIXED COST
SR. Particulars COST
1 Int. on fixed capital 4,95,000
2 Total Depreciation 3,23,500
3 40% of salaries (43,250 * 12 ) 7,51,104
4 40% of other expenses (17,240 * 12 ) 2,35,200
Total
18,04,804
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34. PROFITABILITY (Annually)
SR. COST
Particulars
Income from sales 400 tones @ 25000
1 100,00,000
P.T.
Less : cost of production
2 67,80,820
Gross Profit
32,19,180
Less: operational sales expenses
3 92,400
31,26,780
Less : writes off portion of preliminary
4 18,100
exp.
Profit before tax
31,08,680
Less : Income tax @ 40%
5 12,43,472
Total
18,65,208
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35. IMPORTANT RATIO
1. Break even point (BEP):- = Fixed cost
X 100
Fixed cost + Profit
= 18,04,804
X 100
36,70,012
= 49.18%
2. Return on Capital Investment:-
Profit after tax
= X 100
Total capital inv.
= 18,65,208
X 100
54,58,440
= 34.17 %
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37. 3. Gross profit Ratio: - Gross profit
= X 100
Sales
= 32,19,180
X 100
100,00,000
= 32.19 %
4. Net profit Ratio: - = Net profit
X 100
Sales
18,65,208
= X 100
100,00,000
= 18.65%
5. Return on sale: - = Net profit
X 100
Sales
18,65,208
= X 100
100,00,000
= 18.65%
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38. NAME & ADDRESS OF MACHINARY
SUPPLIERS
1. M/s Pelicon Metal works,
121, Ballasis Road,
Mumbai 400 008
2. M/s Jyoti Machinery Corporation Ltd.
Boiler factory,
R&D exchange palace,
Calcutta
3. M/s UNIVERSAL Metal Works,
J.B. Nagar post office,
Andheri,
Mumbai
4. M/s Sangsung corporation,
6, Dr. lane,
Gole Market
New Delhi.
5. India Techno Ltd.
5-35/44, plot No. 145
Prashanthi Nagar
I.E. Kukatpally
Hyderabad
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39. NAME & ADDRESS OF RAW MATERIAL
SUPPLERS
The raw material required for product of wafer biscuit is maida &
sugar and the other salt, chemicals, vegetable flat….
The raw material is easily available from local market.
1. M/s. Dry & Dry Food Ltd. (MUMBAI)
2. M/s. Popcorn India Pvt. Ltd. (AHMEDABAD)
3. M/s. Matry Foods Co.(BANGLORE)
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40. RISK FACTORS
The risk factors for the unit of wafer biscuits are as follows:
• The product being of daily use, directly affected by the changes in
taste & preference of customers.
• The firm has to introduce day by day new quality; flavor and shape
of the product for attract the consumer.
• The unit face competition from existing new unit as it is common
and prevalent for any unit.
• Change of government policy may affect the profitability of the
unit.
• Change in environment may also affect the materials.
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41. CONCLUSION
Preparation of Business plan provides should platform from
which to start the actual production by small entrepreneurs. In short, the
efficiency and effectiveness have its own role to play in the success of
small –scale unit.
I have found that market for the bakery items is very
much wide and it is also need for all types of people and profit is also
good in this industry.
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