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Business plan mona

  1. 1. BUSINESS PLAN ON CANDLE Prepared By MONA DHARSANDIA M.B.A. SEM. III EN.NO. 117360592074 ACADAMIC YEAR 2011 - 2013 Submitted to GUJARAT TECHNOLOGICAL UNIVERSITY Through N. R. Vekariya Institute of Business Mgt. Studies Bilkha Road, Junagad GUIDED BY DR. RAJESH PATELPREPARED BY : MONA DHARSANDIA 1
  2. 2. DECLARATION I the undersigned mona dharsandia a student of NRVIBMSCollege, M.B.A.- III here by declare that the project report presented in thisreport is my own work and has been carried out under the guidance andsupervisor of Dr. RAJESH PATEL. This work has not been submitted previously to any other university forany examination.Date:-Place:- Junagadh (mona dharsandia) Signature.PREPARED BY : MONA DHARSANDIA 2
  3. 3. PREFACE I am student of M.B.A. SEM-III in N.R.Vekaria Institute Of BusinessManagement Studies College - Junagadh. This course of M.B.A. is two years degree of master of BusinessAdministration. In this business management course practical training hasgiven an immense importance from the Gujarat technological University. InM.B.A. faculty an industrial training is a part of syllabus of Gujarattechnological University. So, in the academic year, we have to preparebusiness plan.PREPARED BY : MONA DHARSANDIA 3
  4. 4. ACKNOWLEDGEMENT I feel great pleasure to present this report before you. I amthankful to all the member of university who had helped me in my guidance. I express my deepest sense of gratitude towards our college lecturer Dr.Rajesh Patel who has guided me preparing project report and without whosesupport my report would have been very difficult to complete it. I am verythankful and heartly grateful to our college staff members who have givenme a true guidance during preparing business plan.Date :-Place :- Junagadh. (mona dharsandia) Signature.PREPARED BY : MONA DHARSANDIA 4
  6. 6. INTRODUCTION India is a nation on move. Its liberalized and open economic policieshave shown result. New avenues have opened up for new business activity. Thereis aroma of all round profession in the air. In this progressive economic scenario,one sector that has emerged as the most happening sector is the small-scale sector.Therefore, the Govt. of India is providing various help for establishment and itsgrowth. It is proving with technical, financial & other guidance also. The main objective of selecting this product is that there is a largedemand for the candles in every occasions & festivals as India is called the countryof festivals.PREPARED BY : MONA DHARSANDIA 6
  7. 7. PROJECT AT GLANCE1. Name of the Company : J & J Industries2. Location of the unit: “J & J Industries” Metoda GIDC, Plot No. 8866 Rajkot.3. Registered Office: Applied for4. Brand Name: „INDIGO‟5. Registration No: Applied for6. Form of Organization: Partnership firm7. Name of the Partners: JAY A. JILKA8. Name of the Product: Candles9. Size of unit: Small – scale10. Cost of Project: Rs.2778700 /-11. Sources of Finance: Ownership Capital12. Investment in Working Capital: Rs.674400/-13. Investment in Fixed Capital: Rs.2720000/-PREPARED BY : MONA DHARSANDIA 7
  8. 8. PROMOTERS BACKGROUNDPartner 1Name: MONA DHARSANDIAAddress: 40, Jankalyan society, “om”, Road no.1, Rajkot - 360001Age: 21 yrs.Qualification: B.COMExperience: nilContribution: 50%Responsibility: Production & Personnel DepartmentPREPARED BY : MONA DHARSANDIA 8
  9. 9. Partner 2Name: JAY A. JILKAAddress: 40, Jankalyan society, “om”, Road no. 1 Rajkot - 360001Age: 21 yrs.Qualification: B.B.A.Experience: NilContribution: 50%Responsibility: Marketing & Finance DepartmentPREPARED BY : MONA DHARSANDIA 9
  10. 10. JUSTIFICATION OF LOCATION Best location is one, which is followed by availabilities of infrastructurefacilities with Raw Materials, labour, transportation, Govt. facilities, if available &marketing etc. All these factors easily available at cheaper cost best suits thefactory site. These factors must be taken into due consideration before decidinglocation of the unit so that any difficulties might not rise-up in future. (a) Raw Material – The first & foremost factor that affects the factory location isavailability of Raw Materials. Raw Material is of prime importance for the smoothfunctioning of any production unit. In this unit 60% of the total cost is materialcost. The wax & thread rolls are easily available in Metoda so this site has beenselected. (b) Supply of Labour – Labour supply must also be cheap & readily available in ample amount so that the work does not break down due to labour inadequacy. Making candles is 99% manual work and therefore the need for semi-skilled & unskilled workers arises. Here the labour is cheaply available. (c) Transport Facilities – A good transportation facility is very well required so that raw materials reach in time to the unit & finished goods to the market – be it to the wholesalers or to the retailers. A good deal of proper & cheap transport facilityPREPARED BY : MONA DHARSANDIA 10
  11. 11. is needed. Metoda has railways & roadways facility, which help to cater all markets. At present the target market for my product is Gujarat & Maharashtra whereby Roadways & Railways facility is easily available from Metoda. (d) Infrastructure Facility – For smooth functioning of any unit even the infrastructure facilities must be properly available. Telephone, Fax, Banking, Insurance, Postal, Water, Fuel, etc must be available at cheaper & regular interval. These are all available in Metoda.PREPARED BY : MONA DHARSANDIA 11
  12. 12. PRODUCT DETAILS The brand name under which “J & J” industry is going to manufacture the candles is “INDIGO”. Indigo candles will be available in red light brown & yellow colors. These candles can be used during marriages, festivals, to decorate the hotels and restaurants as the wick, which will be used, is of good quality as the making of candles is related to quality consciousness rather than quantity. Later on, perfumed and aromatherapy candles will also be manufactured.PREPARED BY : MONA DHARSANDIA 12
  13. 13. MARKET POTENTIAL Market Potential is the scope of your product occupying space in existing market. Your customers, your market share, your contribution in the market already existing, share in whole industry – all these aspects are covered under the head Market Potential. These days the artificial lighting concept as vanished and now people prefernatural lightening during festivals and occasions, especially religious andmarriages. Therefore demand for candles will increase. As all the classes of people can afford the candles the sales willdefinitely increase, as the new concept is very catchy.PREPARED BY : MONA DHARSANDIA 13
  14. 14. RAW MATERIALS The raw materials are the base for the products without which thefinal product is not possible. The raw materials used in making candles are:- Paraffin Wax-Wax is very essential for candle making. This can be purchased at a candle making supply store and comes in the form of granulated wax. Ensure that you buy it from quality suppliers, as it can have a bearing on the final product. Color Dyes and Stearic acid - Use stearic acid to harden the candle. It also helps the candles release from their molds by causing the wax to shrink as it cools. Apply your creative ideas and use different or blended colors to your candles. You can get color dyes from the candle making supply stores and the use of these dyes depends on the size of your candle. You can find these dyes in block, chips and liquid form. Color dyes are highly concentrated and must be used sparingly. Moulds- Shop around to find out different designs of candle making moulds. Moulds come in all shapes and sizes and you can put them to best use by your creative efforts. You are limited only by your imagination.PREPARED BY : MONA DHARSANDIA 14
  15. 15. Ladle and Spoons - Use handy metal spoons or ladle to stir the wax and pour it out. Wick - There is a wide range of wick types and sizes available in the market. Choose a wick that is suitable for the size and shape of candle you are making. The most common candle-making wick is braided cotton that has been treated chemically to improve the quality of burning. If the wick is too small, the candle will not burn well whereas a large wick will cause a smoky flame.PREPARED BY : MONA DHARSANDIA 15
  16. 16. MANUFACTURING PROCESSCandle MakingParaffin wax melts at 130 degrees. While the wax melts, measure the size of wickrequired for your mold.Tie the wick to the center of the pencil or dowel.Suspend the wick in the center of the mold with the help of small weight on theother end.Add stearic acid and color in another pot and allow them to dissolve. Once thetemperature reaches 190 degrees, combine the mixture into the pot with theparaffin wax.Stir and blend them together completely while maintaining the temperature at 190degrees.Finally pour the contents into the mold and let the mixture cool. As the wax cools,it will contract and a small well will form around the wick.Touch the candle; if it is cold it is time to remove it from the mold. Safety iscritical in candle making especially when it comes to wax melting.Keep attending to your pans once you heat wax. The characteristics of a goodcandle are absence of bubbles or lines and long and even burning of the flame.The color must be well distributed and the fragrance it emits must be pleasantwithout being overpowering.PREPARED BY : MONA DHARSANDIA 16
  17. 17. Production Capacity Schedule Total Fixed Assets Particulars Area Rate (Rs.) Amount Land (sq. mt.) 1000 810 810000 810000 Building (sq. ft.) 5000 300 1500000 1500000 Equipments Quantity Aluminum mould 8 1500 12000 Designer block 4 100 400 Stove 3 500 1500 Enamel vessels 8 50 400 14300 Other Assets Furniture 50000 50000 Delivery Van 1 250000 250000 Computer 1 35000 35000 335000 Other equipments 700 Preliminary Expenses 60000 60000 60000 Total 2720000PREPARED BY : MONA DHARSANDIA 17
  18. 18. Cost Of Production Particulars Amount Raw Materials 120000 Staff & Labour 198000 Other Expenses & Utilities 212400 Total 530400 Total Working Capital Requirement Particulars Monthly (Rs.) Yearly (Rs.) Raw Materials 30000 360000 Wages 8500 102000 Utilities 8000 96000 Other expenses 9700 116400 Total Investment: 56200 674400PREPARED BY : MONA DHARSANDIA 18
  19. 19. Raw Materials Requirements Requirement Requirement Rate/ /Day /Month Requirement /YearParticulars Unit(Rs.) Qty Amt Qty Amt Qty AmtWax(kgs) 90 10 900 250 22500 3000 30000Cottonthread(mts) 2 30 60 750 1500 9000 18000Colors (gms) 2 120 240 3000 6000 36000 72000 Total: 1200 30000 120000 Other Expenses Particulars Amount /Month Amount /Year Postage & stationary 200 2400 Telephone 2000 24000 Transport 1200 14400 Insurance 300 3600 Miscellaneous expenses 200 2400 Contingency 300 3600 Selling expenses 500 6000 Packing expenses 5000 60000 Total: 9700 116400 PREPARED BY : MONA DHARSANDIA 19
  20. 20. Staff & Labour Salary No. of Particulars Rate Amount/ month Amount PersonsManager 1 5500 5500 66000Salesman 1 1000 1000 12000Delivery boy 2 500 1000 12000Peon 1 500 500 6000Watchman 1 500 500 6000Semi-skilled labour 3 2000 6000 72000Unskilled labour 2 1000 2000 24000 Total Salary: 16500 198000PREPARED BY : MONA DHARSANDIA 20
  21. 21. Risk Factors Every new business requires to determine its risk factors involved inthe business. As the product is new the main risk is that whether marketwill readily accept the product or not. It will prove success if itproperly marketed. Following are some of the risk factors the newbusiness may face:- 1. The unit will operate in competitive market where other units have already achieved a good name in the market. 2. It may take time to beat the competitors market.PREPARED BY : MONA DHARSANDIA 21
  22. 22. ADVANTAGES AND FUTURE India government is very encouraging the smallscale industries now days. So, there will be lots of help available for the unitand so, the future is very rosy of the unit.PREPARED BY : MONA DHARSANDIA 22
  23. 23. BIBLIOGRAPHYNAME OF BOOKS AUTHOR’S NAME1. Path darshak SSI Shri S.Ganatra2. Principles of Mgt. Philip Kottler3. Web site of related product :  WWW. J & J CHANDEL.comPREPARED BY : MONA DHARSANDIA 23