Broom report

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A
Project Report
On
Submitted By
Pareen V. Bhesadadiya
S.Y.B.B.A. (B)
Roll No. 12
Guided By
Prof. Ajay Jayswal
Submitted To
Saurashtra University
Rajkot
Shri Patel Kelvani Mandal College of Technology
College Road, Junagadh.
Academic year
2015 -2016

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DECLARATION
I, the undersigned Pareen Bhesadadiya a student of T.Y. B.B.A.
hereby declare that the project work presented in this report is my own
work and has been carried out under the supervision and guidance of
Professors
DATE:
PLACE: Junagadh
Signature
(Pareen Bhesadadiya)

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PREFACE
B.B.A course is a special course which prepare young entrepreneur
& it’s very essential that they should have the basic knowledge about
how The Small-Scale-Business can be started
One of the subject namely entrepreneurship and management of
Small-Scale-Business has covered this aspect with a view to creat and
develop entrepreneurial skill among project the student
So, I would like to prepare a Product Project Report on Brooms
DATE:
PLACE: Junagadh
Signature

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ACKNOWLEDGEMENT
I feel great pleasure to present this report of “BROOM”. It is
really a matter of great pleasure for me to present this creative and
practical work. At this stage project report is an important part of
learning and every entrepreneurship prepares it before starting of
actual production.
I take this opportunity to express my sincere thanks to all those
who helped me in the preparation of this report. I am being very
thankful to all Professors for giving me guidance to prepare this
project report.
Date:
Place:
Signature:

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Index
A. Introduction
B. Project at glance
C. Owner’s data
D. Industrial location & advantage
E. Product detail
F. Market analysis
G. Raw material
H. Manufacturing process
I. Production capacity
J. Financial details
K. Sources of financial
L. Profitability of project
M. Project summary
N. B.E.P statement
O. Risk Factors
P. Future plan
Q. Conclusion
R. Bibliography

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A]=Introduction
Unemployment is increasing in our country. The large scale &
small scale industry. Which don’t provide a wide employment because
intensive. So, the small scale industries must be developing in our
country because they are providing more employment.
The SSI ensures more equitable distribution of the national income
and they facilitate an effective mobilization or resources of capital &
skill. Small industries are desirable because it is responsible for dispersal
of production unit to small towns & village.

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B=PROJECT AT GLANCE
Name of the Unit : shamrudhdhi Industries
Product : broom
Communication Address : GIDC, plot no -9161,
Junagadh, 362001
Location of the unit : GIDC, plot no -9161,
Junagadh, 362001
Form of Organization : Partnership Firm
Type of Industries : Manufacturing of broom
SSI Registration Number : Application for
Bankers : State Bank of India
Name of Promoters : Pareen Bhesadadiya
Mr. Patel
Size of Unit : Small Scale Unit

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C=owner’s Data
1. Name Pareen Bhesadadiya
Address A-102, swapna shrusti app.
Near Yamunavadi,
Junagadh,362001
Educational Qualification B.B.A. in marketing
Age 20 Years
Financial Contribution 50 %
Share Of Profit 50 %
2. Name Mr. Patel
Address 204, Indralok app,
Near sai temple,
junagadh-362001
Educational Qualification M.B.A. Marketing
Age 30 Years
Financial Contribution 50 %
Share Of Profit 50 %

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D=Industrials Location &
Advantage
Location is the most important factor to be taken into consider
for the successful working of any organization.
Location of the unit must be near either to raw material or to any
other factors are available in near the organization. Thus the location
Is a most important factor of any location various factor of location
for consideration are as follow.
Transportation: It is easily available from the city area
Junagadh is a metro city so there is a good development of
roadways & transportation facilities. So it is helpful to bring raw
material from Rajkot & other cities of Gujarat
Labour: Supply of labour also influences the selection of
location. As industry working only in shift required No. of labour
skilled as well as unskilled are available in sufficient No. at the
reasonable from Rajkot city.

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Land: Land is a basic necessity for each & every industry
without land no industry can be come out into existence so land is
easily available at subsidized rates by Govt of Gujarat.
Power, water & other facilities: Baroda is declared as
industrial zone by the government of Gujarat. So state
government provides power, water and other facilities like road,
shed at cheaper rates.
Availability of market: Market plays an important role
in the selection of location. Market should be near to the industry so;
the immediate sale of product is possible. It also helps in reduction of
cost by reducing storing of finished goods, avoid the
transportation etc.

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E]= Product details and
Its uses
The people regularly use broom in day. Broom is use in clean a
house, office, road, etc… Broom is very essential part of
housekeeping. Broom type as under.
Broom Types
Besom Broom – This type of broom, which looks like
the ones being used in the ancient times, is still used by
some people to clean their backyards. It is a roundel bundle
of twigs that are bound in wooden sticks.
Flat Broom - A flat broom is the classic broom with
wooden handle that is commonly used nowadays. It has an
evenly-trimmed end and is sometimes cut at an angle to
easily sweep corners.
Push Broom - A push broom has its bristles attached to
a wooden block before it is fixed to a wooden or metal
handle. It is rectangular in shape and is great for sweeping
outdoors as it covers large spaces. Its bristles are usually
synthetic that are washable and sometimes treated with
chemicals that are meant to withstand greases, solvents, and
other stains, especially on commercial floors.

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Whisk Broom – A whisk broom looks like a flat
broom but only it’s smaller. It is designed to be hand-held
to easily clean up small spaces, such as tables and tents,
as well as the hidden areas behind appliances, cabinets,
and more. A whisk broom can also be made of synthetic
fiber, sometimes with a plastic handle and even a small
plastic dustpan.
Wet/Dry Broom - This type of broom consists of
bristles that are spread out apart from each other to easily
sweep of large dirt and to scrub floors both indoor and
outdoor. The bristles vary from natural to synthetic fibers.

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F]=Market Analysis
Marketing is the most important activity for any product. It is
very essential to have a sound marketing system which includes a
well selected distribution channel well worded and attractive
advertisement reasonable as well as affordable price and above all a
good quality product.
The business is becoming more &more competitive every day.
We generally believe that the business segment in which we will we
operate offers us opportunity for growth.
Sweeping has been a very essential part of housekeeping. Every
home has some sort of Broom. So the Broom is very high demand in
the market.

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G]=Raw material
✓ Natural corn fiber - Natural corn fiber bristles are thick, stiff,
durable, and great at holding small particles of dirt. Brooms made of corn
are usually triangular in shape and are great for indoor, as well as outdoor
use. There are also industrial corn brooms, which are designed for heavy
duty sweeping on commercial floors with thicker and stiffer fibers.
✓ Polypropylene - A polypropylene is a thermoplastic polymer resin
that is known to be lightweight, sturdy, and resistant to water and
solvents, oil, and more. Polypropylene bristles do not easily break even in
the presence of bacteria and they are also odor-resistant. Its sturdy nature
make it great for medium to heavy floor sweeps and scrub brushes,
especially on damp areas, which are sometimes difficult to sweep.
✓ Rubber – Rubber brooms have become popular sweeping brooms
nowadays with its sturdy nature and ability to sweep off hair and fur more
efficiently. Using a rubber broom is great for pet owners who find it
difficult to sweep off hair and fur from carpets, rugs, and fabric. It is also
easy to control and use. Many rubber brooms come with a squeegee that
makes it a more versatile household equipment to clean up liquid on the
floor. Example of a very popular and useful rubber broom in Australia is
sweep broom.
✓ Nylon - This popular type of broom bristle that does not bend easily
when sweeping at certain directions. It is also known for being durable
and resistant to acids, oil, and other solvents. It can be used for both wet
and dry floors and for both light dusting to aggressive cleaning.
✓ Tampico - Tampico, derived from Mexican agave plant is also a
popular broom bristle material. These bristles are soft and fine. Tampico
can be quite expensive, but it takes some time to break with its resistance
to heat and many chemicals.

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H]=Manufacturing process
It is important to note that brooms made from broomcorn are
made at a station, using a single piece of machinery. Using this
machine, brooms are largely still assembled by hand. The process
described below is used by the largest manufacturer of brooms and
the factory uses about 28 makers to produce 6,000 brooms per day.
Step-:1
The raw material for the broom, the broomcorn, comes into
the factory already processed and bundled. The bundles are
sorted by length and are sorted by the color of the fiber.
Bundles are grouped together in a bale weighing about 120 lb
(54 kg). Broomcom must be wet in order to be worked
effectively and must be quickly dunked in water before being
delivered to the operator. Each bale is lifted with a crane and
submerged in a tank of water for 10 seconds. The bundles are
then removed from the water using the crane.
Step-:2
Workers break apart the wet bales and separate the smaller
bundles within the bales. The bundles are placed on racks and
rolled to operators who sit at broom-manufacturing
equipment.
Step-:3An operator sits at a broom-making machine and has
the broomcorn and solid handles there to work. An individual
handle is picked up by the operator. The operator inserts a
metal wire into a hole drilled near the bottom of the handle.
Then, the insides are first applied to the broom. In this process,
the lowest-grade grass is pressed around the wooden handle,

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forming the center of the broom. This thick bundle of grass is
secured tightly to the handle using the wire attached to the
handle through the hole.
Step-:3
Then, the shoulders and sides of the broom are given shape as
smaller bundles of lesser grade grasses are placed along each
side of the center bundle of grass. This side corn is secured to
the central bundle of grass using more tinned wire that is
wrapped by hand tightly around the side corn as well as the
central body of grass.
Step-:4
Next, the grass is cut off in a straight line just above the wire by
the operator using a knife.
Step-:5
Over this foundation of lower-grade broomcorn or other grasses is
now added the outside of the broom, or the broomcorn we see
when we look at a broom. The hurl, the best grade of broomcorn
used in a broom, is attached to the broom. It is laid atop the
center section and shoulders, completely covering it. The hurl is
physically attached to the broom using the same piece of white
metal wire used earlier in the process.
Step-:6
The final construction step is referred to as the run down. The
operator runs the wire that secures the hurl down to the
handle and nails it off, thus securing the cut end to the wooden
handle. The grasses and broom-corn are now completely
secured to the broom.

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Step-:7
The brooms are now constructed but are not finished yet. In
order to complete the broom, the broomcorn must be dried out
completely. The brooms are moved by rack or palette into a very
large drying room that is thermostatically controlled. Depending
on the weather, the brooms are left in this large, hot room for five
to six hours. When instruments inside the room indicate that no
more moisture is being released from the brooms, the heat kicks
off and the broomcorn has completely dried.
Step-:8
The brooms are now seeded, meaning that cylinders roll
vertically over the broomcorn, thus removing all the seeds and
small pieces of broomcorn not secured to the handle that will
fall out quickly upon use.
Step-:9
The seeded brooms are taken to sewing machine operators who
run the brooms through a heavy-duty sewing machine with two
needles that are threaded with thick twine. The brooms are put
through the machine and the broom is flattened and its shape is
maintained through the double, triple, or quadruple rows of
sewing (depending on the machine and company) that holds the
grasses tightly. It takes about 45 seconds to sew the brooms into
a flat shape.
Step-:10
The brooms are moved by cart to final finishing, where they are
trimmed across the bottom so they are even, packaged, and
sent for distribution.

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I] =Production capacity
Year. Installed
Capacity
Utilized
Capacity
Uts.
Produced
Rate/Kg.
1st
100%
350000
70% 245000 60
2nd
100%
350000
80% 280000 60
3rd
100%
350000
85% 297500 60

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J] =Financial details
1) Details of land and building
No. Particulars Area Rate Total
1. Land 2300 sq mts 650 14,95,000
2. Building 7500 sq fts 300 22,50,000
TOTAL 37,45,000
2) Details of Plants and Machinery
No. Particulars Qty. Amount
1. Cutter 1 1,80,000
2. Packing 1 1,00,000
3. Water Extractor 1 3,00,000
TOTAL 5,80,000
Preliminary and Pre operative expense Rs. 1, 50,000

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3) Total Cost of Project
COST OF ASSET
Sr.no Particulars Total Amount
01 Land 14,95,000
02 Building 22,50,000
03 Machineries 5,80,000
04 Other fixed assets
(furniture)
7,50,000
Total Cost of fixed assets 50,75,000
WORKING CAPITAL COST OF PROJEC
01 Value of Raw Material 5,40,000
02 Wages & Salary 45,000
03 Electricity bills 10,000
04 Overhead Expenses 5,000
Total working capital
{1}months
50,000
Total working capital
{ 12 }month
6,00,000

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TOTAL COST OF A PROJECT
01 Fixed Assets 50,75,000
02 Working Capital 6,00,000
Total cost of project 56,75,000
4) Total fixed Assets
No. Particulars Qty. Amount(Rs.)
1. Delivery Van 1 4,00,000
2. Furniture 5 1,00,000
3. Electric Fitting 2 2,00,000
4. Computer 2 50,000
5. Land and Building 3 37,45,000
3. Plant and Machinery 3 5,80,000
5. Preliminary and Pre-
operative Exps.
1 1,50,000
TOTAL 52,75,000

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K]=Sources of financial
Financial Arrangement
A.Sources of Finance
Sr.no Particulars Own Partner=1 Partner=2 Total
Amount
01 Land 14,95,000 7,47,500 7,47,500 14,95,000
02 Building 22,50,000 11,25,000 11,25,000 22,50,000
03 Machineries 5,80,000 2,90,000 2,90,000 5,80,000
04 Furniture 1,00,000 50,000 50,000 1,00,000
05 Working
Capital
6,00,000 3,00,000 3,00,000 6,00,000
TOTAL 50,25,000 25,12,500 25,12,500 50,25,000
B.MEANS OF FINANCE
01 Owned Contribution 50,25,000
Total Cost of Project 50,25,000

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L] =Profitability of project
A-Utilities
No. Particulars Qty. Rate Monthly Annually
1. Electricity 3000KWH 10 30,000 3,60,000
2. Water 15,000 1,80,000
3. Fuel 9,000 1,08,000
TOTAL 54,000 6,48,000
B-Man Power Requirements
TOP LEVEL
No. Designation No. Of
Employees
Monthly
Salary
Yearly
Salary
1. Manager 1 10,000 1,20,000
2. Accountant 1 10,000 1,20,000
TOTAL 20,000 2,40,000
MIDDLE LEVEL
Employees
Monthly
Salary
Yearly
Salary
1. Clerk 1 5,000 60,000
2. Supervisor 2 6,000 1,44,000
TOTAL 11,000 2,04,000

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C-Administrative Expenses
D-Depreciation
LOWER LEVEL
Employees
Monthly
Salary
Yearly
Salary
1. Skilled 4 8,000 3,84,000
2. Unskilled 5 7,000 4,20,000
TOTAL 15,000 8,06,000
LEVELS OF MANAGEMENT
No. Particulars
Monthly
Salary
Yearly Salary
1. Top Level 20,000 2,40,000
2. Middle Level 11,000 2,04,000
3. Lower Level 15,000 8,06,000
TOTAL SALARY 46,000 12,50,000
No. Particulars Value Rate 1st
Year 2nd
Year 3rd
Year
1. Building &
land
37,45,000 10 % 3,74,500 3,37,050 3,03,345
2. Plant &
Machinery
5,80,000 25 % 1,45,000 1,08,750 81,563
3. Computer 1,00,000 40 % 40,000 24,000 14,400
4. Furniture 1,00,000 15 % 15,000 12,750 10,838
5. Vehicle 4,00,000 15 % 60,000 51,000 43,350
TOTAL 6,34,500 5,33,550 4,53,496

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E-Interest
No. Particulars Percentage Partner-1 Partner-2 Total
Amount
1. Owned 8 % 1,78,600 1,78,600 3,57,200
TOTAL 1,78,600 1,78,600 3,57,200
F-Sales Forecast
Year Utilized
Capacity
Production Sales Selling
Price
Amount
1st 70 % 2,45,000 2,45,000 60 1,47,00,000
2nd 80 % 2,80,000 2,80,000 60 1,68,00,000
3rd 85 % 2,97,500 2,97,500 65 1,93,37,500
4th 90 % 3,15,000 3,15,000 65 2,04,75,000
5th 95 % 3,32,500 3,32,500 70 2,32,75,000
G-Other Contingent Expenses
No. Particulars Amount Per
Month
Amount Per
Year
1. Repairs & Maintenance 6,000 72,000
2. Legal Expenses 4,000 48,000
3. Miscellaneous Expenses 4,000 48,000
4. Printing Expense 8,000 96,000
5. Telephone Expense 2,500 30,000
6. Advertisement & Selling
Expenses
6,000 72,000
7. Postage & Stationary 750 9,000
TOTAL 31,250 3,75,000

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H-Annual Cost of Production
No. Particulars Amount
1. Raw Materials 1,15,14,000
2. Wages & Salary 12,50,000
3. Other Expenses 3,75,000
4. Utilities 6,48,00
5. Depreciation 6,34,500
6. Interest On Capital (Owned) 3,57,200
TOTAL 1,47,78,700

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P] =B.E.P Statement
1. Cost Per Unit
1. Fixed Cost: -
1. Staff & Labour 60% 7,50,000
2. Other Contingent Expenses (60%) 2,25,000
3. Depreciation 6,34,500
4. Interest on Capital 3,57,200
5. Preliminary Expenses W/O 50,000
TOTAL 20,16,700
FCPU = Total Fixed Cost
Uts. Sold
= 20,16,700
2,45,000 = Rs. 8.23
2. Variable Cost:-
1. Raw Materials 1,15,14,000
2. Other Contingent Expenses (40%) 1,50,000
3. Utilities 6,48,000
4. Staff & Labour (40%) 4,71,200
Preliminary Expenses 1,00,000
TOTAL 1,29,12,000
VCPU = Total Variable Cost
Uts. Sold
= 1,29,12,000
2,45,000 =Rs. 52.70

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2.Break Even Analyses
Particular Amount(units) Amount (Rs.)
sales 60 1,47,00,000
(less)variable cost 52.70 1,25,05,200
contribution 7.3 21,94,800
(less)Fixed cost 8.23 11,34,800
profit 10,60,000
PV Ratio = Contribution * 100
Sales
= 21,94,800 * 100
1,47,00,000 = 14.93 %
1. BEP (in Uts.) = Fixed Cost
Contribution per unit
= 11, 34,800
7.3 = 1,55,452 Uts.

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2. BEP (in Rs.) = Fixed Cost * 100
PV Ratio
= 11,34,800 * 100 = 76,00,804 Rs.
14.93
3. BEP (in %) = Fixed Cost * utilized capacity
Contribution
= 11,34,800 * 70
21,94,800 = 36.19 %

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3. Profitability
Particulars Amount
Sales 1,47,00,000
Less:-
Cost Of Production
1,35,40,000
EBIT 11,60,000
Less:-
Interest on Bank Loan
0
EBT 11,60,000
Less:-
Tax @ 35%
4,06,000
NET PROFIT 7,54,000

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4. Ratio Analyses
A. Rate Of Investment :-
ROI = EBIT * 100
Project Fund
= 11,60,000 * 100
67,30,000
= 17.24 %
B.Net Profit Ratio :-
NPR = Net Profit * 100
Sales
= 7,54,000 *100
1,47,00,000
= 5.13 %

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C.Gross Profit Ratio :-
GPR = Gross Profit * 100
Sales
= 2,35,200 *100
1,47,00,000
= 1.6 %
D.Fixed Assets Turnover Ratio :-
FATR = Fixed Assets * 100
Sales
= 52,75,000 *100
1,47,00,000
= 35.88 %

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Q] =Risk Factors
Every new business needs to determine its risk factors that
the business will face. It risk factors are carefully determined then the
entrepreneur can take better measures to see that they have limited
effect on the business following are some of the risks that the new
business will face:-
1. The risk of failure of Project.
2. Initially Production would be low but Cost of Production
may be higher.
3. Initially required amount of sales would not be achievable
and will result in loss.
4. The business would take a longer period to reach break even
Point.
5. Negative attitude of customers.

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R] = Conclusion
India is a developing country. There is very much importance of
occasion in India. now a day’s people do not want to waste time & energy
for washing dish , so the product like paper dish are used in large number of
quantity to parties, sweet shops, picnic, marriage etc. these product save
time, energy and money of the people so it is very popular in the social life.
We are expecting much better market for paper dishes because in this
fast moving world people not have much time and the disposable product
may get better future market.

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S] = Discloser
Of Accounting Policy
✓ Depreciation is calculated on straight line methods.
✓ Salary is given within 1st week of every month.
✓ Raw material is purchased once in two months.
✓ Stock is calculated at cost or market price whichever is low.
✓ Interest on ownership capital is used for costing purpose and is
reinvested in business again every year.

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T] = FUTURE PLAN
✓ To use totally eco-friendly broom, which are made out of plastic
and not grass.
✓ To make the product popular in every place of India and
gradually cover all nearby country.
✓ To make the firm a medium scale industry and then a large scale.
✓ If possible I would export my product, as they are highly in
demand in foreign countries.

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U] = CONCLUSION
In the product project report on Broom. I have discussed all financial
data and other relevant information
The market of Broom is expanding; demand for the product is
increasing day by day. The return on this business is also satisfactory.
At last it can be said that future of this product is very bright.
With the expectation of high profitability it is assumed that it would
be the perfect product to be manufactured in today’s environment. AFTER
ALL IT’S AN ENVIRONMENTAL FRIENDLY PRODUCT!!! It’s
Broom

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V] = BIBLIOGRAPHY
➢ Books:-
Modern business & Mgt. =Himalaya Publishing House
Marketing Mgt. =Tapan K. panda
Financial Mgt.= Khan & Jain

Broom report

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