Insurers' journeys to build a mastery in the IoT usage
Bhavin khunt business plan
1. Business plan
On
PREPARED BY
KHUNT BHAVIN C.
M.B.A.
Roll No: - 33
GUIDED BY :- DR. RAJESH PATEL
NAME OF INSTITUTE
N.R.V.I.B.M.S.
M.B.A. COLLEGE,
BILKHA ROAD,
JUNAGADH – 362 001.
1
2. PREFACE
Assuming that the student him self is an entrepreneur the syllabus
of M.B.A. includes “preparation of business plan” It is having practical
importance and it helps in launching a product.
Business planis high light of location justification, capital
requirement, technology, inception, and expansion of business and most
important. i.e. Social responsibility of business.
The Vital Role of business plan is in determining profitability of a
product and it is measurement. “How for the planning is successful.”
I have prepared by my business plan on “mini cement industry”
2
3. CONTENTS
Sr. No. Particulars Page No.
1. ACKNOWLEDGEMENT 3
2. PROJECT AT A GLANCE 4
3. BIO-DATA OF PROMOTERS 5
4. PROPOSED LOCATION JUSTIFICATION 6
5. MARKETING ANALYSIS 9
6. MANUFACTURING PROCESS 10
7. IMPLEMENTATION SCHEDULE 11
8. FINANCIAL DETAIL OF A PROJECT 13
9. FINANCIAL ARRANGEMENT 18
10. PROFITABILITY OF A PROJECT 19
11. PROJECT SUMMARY 24
12. CASH FLOW STATEMENT 25
13. FUND FLOW STATEMENT 26
14. BREAK EVEN POINT ANALYSIS 27
15. NAME & ADDRESS OF MACHINERY & 29
EQUIPMENT SUPPLIER
16. NAME & ADDRESS OF RAW MATERIAL 30
SUPPLIER
17. FUTURE PROSPECTS 31
3
4. 1. ACKNOWLEDGEMENT
I am very glade to present this business planof mini cement industry
before you. I have great significance in the enter premiership and it has also vital
importance on practical aspect of entrepreneurship and new innovation
entrepreneurial as per our syllabus of M.B.A.
This is important as well as useful for us to have a practical
experience for preparing business plan. Though which have got idea about
preparing business plan & also the first stage of establishing small scale
industry.
I am also thankful to our director Dr. Rajesh Patel for providing me
this opportunity and also for providing me valuable elaborate efforts to make
this business plan as successful in one in all aspects.
Place:- Junagadh yours faithfully.
Date:-
[khunt Bhavin c.]
4
5. 2. PROJECT AT A GLANCE
Name of the unit :- “RAJLAKSMI CEMENT INDUSTRY”
Communication Address :- Plot No. 1641142,
G.I.D.C.-1,
Dolatpara,
Junagadh – 362 001.
Product Name :- ‘43’ & ‘53’ Grade cement
Location of the unit :- Plot No. 1641/42,
G.I.D.C.-1,
Dolatpara,
Junagadh – 3362 001.
Bankers :- State Bank of Saurastra.
Bank of India.
S.S.I. Registration No. :-An Application is made with Junagadh DIC
for Registration.
Subsidy Registration No. :-An Application is made with Junagadh DIC
Other Registration No. :- If any, No.
Main power :- 35
Utilised Capacity :- 60%
Partners Name :- Mr. khunt Bhavin C.
Mr. kumbhani jaydip M.
5
6. 3. BIO-DATA OF PROMOTERS
PARTNER-A
NAME :- KHUNT BHAVIN C.
ADDRESS :- “VADLI CHOCK ,
AMBAVADI PLOT,
MENDRADA-362260
AGE :- 21 YEAR.
ACADEMIC
QUALIFICATION :- M.B.A. SPECIALISATION IN FINANCE
AND MANAGEMENT ACCOUNTING.
CONTRIBUTION :- 50 %
NATURE OF WORK :- AREA OF FINANCE & PERSONNEL.
WORKING
EXPERIENCE :- TRAINING AT M.B.A. LEVEL.
PARTNER-B
NAME :- KUMBHANI JAYDIP M.
ADDRESS :- JAY SOMNATH, HUDMATIYA ROAD,
ANKOLWADI (GIR), TA-TALALA, DIST.
JUNAGADH.
AGE :- 25 YEAR.
ACADEMIC
QUALIFICATION :- B.E.(IT), M.B.A. (FINANCE) DEPLOMA IN
COMPUTER SCIENCE.
CONTRIBUTION :- 50 %
NATURE OF WORK :- AREA OF PRODUCTION & FINANCE.
WORKING
EXPERIENCE :- 2 YEARS EXPERIENCE IN ‘AMBUJA
CEMENT’.
6
7. 4. PROPOSED LOCATION
JUSTIFICATION
Every entrepreneur of small-scale unit makes a very care full
decision regarding the location of the unit for two reason. Firstly location affect
the cost structure and profitability of the plant. Through out its operating life and
secondly, once the place, it is very difficulty to change the location. Optimum
location point is expected to give the lowest cost of production as well as
distribution and hence, it can be must profitable for the business. In short
location of a unit determines to a great extent the survival as well as the
prosperity of a unit.
This unit is manufacturing cement product at Junagadh. The
location is selected because it assures following advantages.
1. Availability of Raw-Material :-
The important factor for function is Raw material at Junagadh. i.e.
G.I.D.C. is prime location for each industries. Due to direct contract with other
part of India. It is easy to get Limstone, Gypsum, etc. it is available from
Kovaya near rajula and other place.
2. Availability of Labour :-
Economic, social, and political aspect of Labour supply have an
important influence. There are three types of labour.
a. Skilled.
b. Unskilled.
c. Semi skilled.
Our enterprise needs, skilled as well as unskilled labour and
availability is easy. A technical administrative work is also carried out our
qualified partners.
7
8. 3. Market :-
Market is a one of the important factor for industrial unit to the
location. Location of firm is in Junagadh. That’s why big market of Junagadh
city is available for the firm. Not only this but market of saurashtra region and
kutch region is captured by the firm easily from this location.
4. Infrastructure facility :-
Infrastructure facility are also provide by the firm are as under :-
A. Power & fuel facility :-
The term used as a fuel which is available from
Junagadh. The requirement of the power is easily available fro GEB-Junagadh.
The unit shall not found any difficulty to get power supply.
B. Water :-
Water is just like a Raw material for ‘Cement Product’
and it is available.
C. Transportation :-
Junagadh is the place which both railway and road
way. So it is easy to get raw material and entire to sent to it market.
D. Communication :-
The place has get a special industrial area having
direct contract with overall Gujarat and some parts of south and north India. By
this way this facility helps for a selection of location.
5. Personal factors :-
Determining personal factor affect in deciding the location of firm.
8
9. The firm is located in native of partner’s of the firm. That’s why this reason is
prime responsible to locate firm in this area.
Our channel of distribution is two level channel.
Manufacturer
Dealers
Retailers
Final Consumer
Distribution :-
We need help of middle man for reaching the product to final
consumer. We have offered a contract with 5 dealers in different cities i.e. :-
Junagadh, Rajkot, Ahmedabad, Wankaner, Surat, who will purchase product
from use and supply to retailers.
9
10. 5. MARKETING ANALYSIS
Marketing plays an important role in this success of a small scale
industry. Marketing is the performance of business activities that direct follow of
goods and service from producer to consumer.
A product having good quality and cheaper cost may fail in market
due to lack of demand substitution, available, etc., that’s why analysis of market
of products is prime responsibility of promoter of the firm.
Now a day Cement is more useful in contraction of the building,
road, etc. so the demand of cement is increased day by day due to quality of
cement has good demand trend.
“RAJLAKSMI CEMENT INDUSTRY” covers overall market of
Gujarat. Gujarat state is one of the progressive states of India. So there is more
and more useful in contraction of Building and road, etc. so, Cement product has
a good demand.
10
11. 6. MANUFACTURING PROCESS
In production process first we point out what types of material will
be require in the process of cement product. I.e. Limestone, Gypsum, is main
raw-material which are used in the process.
The process is quite dry process so water requirement is completely
less. All the process is manufactured by the man power computers help the
manufacturing process is not so long process in manufacturing cement.
Raw mill Department :-
Material is come out according to the requirement in raw mill from
hoper in raw mill material is grinding by grinder machine. Which capability is
100 to 150 materials is stopped in site from raw mill by secure ten.
Crusher Department :-
After the stage of receiving lime stone is transferred and unloaded
in crushed for grinding clap is carried away by tracks from in at porbandar.
Total carbonate of lime stone is 92% and for making cement 80%
carbonate is necessary and for making total carbonate 80% clay is mixed. Which
carbonate is to 25% then the total carbonate of lime stone is now 80%.
Packing Department :-
It is a final stage of the mill here complete mill is taken for packing
cement is packed by an automatic belt from silo the checked piece is put in to
the bag then it is ready for sale.
The cement is packed in to plastic cement bags are brought from
Ahmedabad grass unit of each bags are 50 k.g.
11
12. The total production per day is 550 plastic bags.
7. IMPLEMENTATION SCHEDULE
Survey for collection of data in respect
of demand, raw-material including 0 to 3rd Month
power & fuel availability of
technology, pollution control.
Arrangement for margin money 3rd Month to 4th Month
Preparation of project document and 3rd Month to 4th Month
registration.
Selection of site and development of 4th Month to 7th Month
land.
Finance assistance. 4th Month to 7th Month
Make shift office. 8th Month
Clearness for pollution. 3rd Month to 5th Month
Electricity, fuel & water tie up for 4th Month to 6th Month
availability.
Contraction , modification, renovation 7th Month to 10th Month
of building.
Identification selection of machine. 5th Month
Placement of order 6th Month
Transportation & installation of 10th Month to 11th Month
machine & equipment.
Selection of raw material and 9th Month
replacement of order.
Receipt of raw material. 10th to 11th Month
Trial production. 12th Month
12
13. ‘Schedule for installed capacity.’
(100%)
Sr. Name of product Daily Monthly Yearly Rate Amt. Rs.
No. (per bag)
1. ‘A’ quality 300 7,500 90,000 100 90,00,000
product ‘53’ grade
2. ‘B’ quality 250 6,250 75,000 90 67,50,000
product ‘43’ grade
Total production 1,57,50,000
‘Schedule for utilized capacity.’
(60%)
Sr. Name of product Daily Monthly Yearly Rate Amt. Rs.
No. (per bag)
1. ‘A’ quality 180 4,500 54,000 100 54,00,000
product ‘53’ grade
2. ‘B’ quality 150 3,750 45,000 90 40,50,000
product ‘43’ grade
Total production 94,50,000
1 Month = 25 days
1 Month = 300 days
13
14. 8. FINANCIAL DETAIL OF A PROJECT
Sr. No. Particular Page No.
(I) Land 14
(II) Building premises 14
(III) Machinery & equipment 15
(IV) Fixed capital cost of a project 16
(V) Working capital requirement 17
(VI) Total cost of a project 17
14
15. (I) Details of Land
Sr. No. Land Area size Rate Amt. Rs.
1. Open land 2500 sq. mtr. 200 5,00,000
2. Land development 2500 sq. mtr. 50 1,25,000
and other expenses
Total cost of Land 6,25,000
For this types of cement product require 2500 Sq. mtr. Land.
Building comprising of factory shed and go down office and other is to be
constructed. Total cost of construction are as under.
(II) Details of Building or premises
Building comprising of factory shed and go down office and other
is to be constructed. Total cost of construction are as under.
Sr. No. Details Area Rate Amt. Rs.
1. Factory shed 1000 sq. mtr. 900 9,00,000
2. Go down shed 400 sq. mtr. 600 2,40,000
3. Office room & 300 sq. mtr. 1200 3,60,000
laboratory
4. Store room 100 sq. mtr. 800 80,000
5. Other 400 sq. mtr. 200 80,000
Total cost of 16,60,000
contraction
15
16. (III) Details of machinery & equipment
Unit proposed to purchase different types of machineries and
equipments from different manufacturers and suppliers. The cost of machinery
& equipment will approximately Rs. 10,67,000. Details of all is given as under.
Sr. No. Name of machinery Qty. No. Amt. Rs.
1. GRINDER MACHINERY 3 1,50,000
2. PRE-HEATER 2 50,000
3. RAW-MILL 2 1,00,000
4. COAL-MILL 1 50,000
5. FLUXO PACKER 1 70,000
6. CRUSHER 3 3,00,000
7. CEMENT-MILL 2 1,50,000
Total cost of machinery & 9,70,000
equipment
+ 10% for tax erection & 97,000
transportation charges
10,67,000
16
17. (IV) Fixed capital cost of a project
Sr. No. Particulars Amt. Rs.
1. Details of land 6,25,000
2. Building or premises 16,60,000
3. Machinery & equipment 10,67,000
4. Contingency [10% pf the value of building & 2,72,700
machinery]
5. Preliminary expenses 1,75,300
6. Other expenses [Furniture, tools, dyes, etc.] 2,50,000
Total fixed capital cost of a project 40,50,000
17
18. (V) Working capital requirement
Sr. No. Particulars Days/month Amt. Rs.
1. Stock of raw material 15 days 56,000
2. Work in progress (for chemical unit) 25,000
3. Stock of finished goods 7 days 20,000
4. Bills receivable / debtors 20 days 75,000
5. Current expenses :-
- Rent 1 month 80,000
- GEB bill 1 month 92,800
- Salary 1 month 50,000
- Other miscellaneous expenses like 1 month 70,000
printing, traveling, etc.
Total working capital 4,68,800
(VI) Total cost of a project
Sr. No. Particulars Amt. Rs.
1. Total fixed capital cost of a project 40,50,000
2. Total working capital requirement 4,68,800
Total cost of a project 45,18,800
18
19. 9. FINANCIAL ARRENGMENT
(I) Sources of finance / financial arrangement
Sr. Particulars Total Bank of Amt. Rs.
No. Amt. India
1. Land 6,25,000 3,75,000 2,50,000
2. Building 16,60,000 6,64,000 9,96,000
3. Machinery & equipment 10,67,000 3,20,100 7,46,900
4. Contingency 2,72,700 - 2,72,700
5. Preliminary expenses 1,75,300 - 1,75,300
6. Other expenses 2,50,000 1,25,000 1,25,000
7. Working capital 4,68,800 4,68,800 -
Total sources of finance 45,18,800 19,52,90 25,65,900
0
(II) Means of finance
Sr. No. Particulars Amt. Rs.
1. Loan from Bank of India 19,52,900
2. Own contribution 25,65,900
(banking balancing figure)
Means of finance 45,18,800
19
20. 10. PROFITABILITY OF A PROJECT
(I) Details of sales & production
Sr. No. Particulars (Details) Rate Qty Amt. Rs.
1. ‘A’ quality product 100 54,000 54,00,000
[‘53’ grade]
2. ‘B’ quality product 90 42,000 37,80,000
[‘43’ grade]
Total Sales 91,80,000
(II) Raw material (including packing material)
Sr. No. Details Rate Qty Amt. Rs.
1. Lime stone 2000 820 16,40,000
2. Sweetner 850 560 4,76,000
3. Gypsum 2500 400 10,00,000
4. Other power 1700 80 1,36,000
5. Plastic bags (1,65,000 x 1.5) 2,47,500
Total R. M. 34,99,500
20
21. (III) Salary & wages
Sr. No. Designation No. Salary Monthly Yearly
1. Manager (cremic) 1 7,000 7,000 84,000
2. Supervisor 1 4,000 4,000 48,000
3. Store keeper 1 3,000 3,000 36,000
4. Clerk-cum-typist 1 2,500 2,500 30,000
5. Watchman 1 1,500 1,500 18,000
6. Peon 1 1,500 1,500 18,000
7. Skilled workers 10 2,500 25,000 3,00,000
8. Semi-skilled workers 7 2,000 14,000 1,68,000
9. Unskilled workers 12 1,500 18,000 2,16,000
Total employee 35 9,18,000
+ Perquisites @ 20% of 1,83,600
salary (bonus)
Total salary & wages 11,01,600
(IV) Electricity consumed
= 225 Hours power x 0.75 per H.P. x
Working hours per ‘8’ days. x
Total no. of working days ‘300’ x
60 % utilized capacity x
Rs. 4 per unit
Electricity consume =
= 225 x 0.75 x 8 x 300 x 65 % x 4
= 9,72,000
21
22. (V) Rent, Taxes & Insurance
Sr. No. Particular Amt. Rs.
1. Rent 44,500
2. Taxes (total production of 10%) 9,18,000
3. Insurance 1,50,000
Total 11,12,500
(VI) Repairs & Maintenance
Sr. No. Particular Monthly Yearly
1. Repairs 5,000 72,000
2. Maintenance 7,500 90,000
Total Repairs & Maintenance 1,62,000
(VII) Interest
Sr. No. Particular Rate Total value Amt. Rs.
1. Bank loan from Bank of India 12 % 19,52,900 2,34,348
Total 11,12,500
(VIII) Depreciation [prevailing rate under IT]
Sr. No. Particular Total Rate Amt. Rs.
value
1. Building 16,60,00 10 % 1,66,000
0
2. Machinery 10,67,00 12 % 1,28,040
0
Total Depreciation 2,94,040
22
26. 12. CASH FLOW STATEMENT
Particular Amt. Amt.
Sources of Cash :-
Own capital 25,65,900
Loan from Bank of India 19,52,900
Profit as per P & L a/c. (P.B.T.) 11,80,612
Total sources of cash 56,99,412
Application of cash :-
Purchase of total fixed assets 40,50,000
Payment of tax 4,13,214
Depreciation 2,94,040
Cash balance 9,42,158
Total application of cash 56,99,412
26
27. 13. FUND FLOW STATEMENT
Sources Amt. Rs. Application Amt. Rs.
Own contribution 25,65,900 Purchase of land 6,25,000
contribution of building 16,60,000
Loan from 19,52,900 Purchase of machinery 10,67,000
Bank of India Increase in Wlc 4,68,800
Preliminary expenses 1,75,300
Other expenses 2,50,000
Contingency 2,72,700
45,18,800 45,18,800
27
28. 14. BREAK EVEN POINT STATEMENT
Break even point refers to situation of firm where there is no profit
and no loss. B.E.P. statement is most important document for decision any
decision makes of the any concern. It shows how much unit company should
produced or how much sales of firm so there is no profit no loss situation in
firm. Further, it prescribed relation with cost and profit volume. Thus, it is
important profit planning tool has every entrepreneur.
Below the statement of B.E.P. of “SADHANA CEMENT IND.” Is
given. :-
Break even point statement
Sr. no. Details Amt.
1. Sales 91,80,000
2. Variable cost 62,77,860
3. Contribution 29,02,140
4. Fixed cost 17,21,528
5. Gross profit 11,80,612
1) Net Profit Ratio :-
Net Profit Ratio = net profit x 100
Sales
= 7,67,398 x 100
1,80,000
Net Profit Ratio = 8.36
28
29. 2) Break even point [BEP] :-
BEP = fixed cost x 100
P/V ratio
= 17,21,528 x 100
31.61
BEP = 54,46,150
3) Profit volume Ratio :-
P./v. Ratio = contribution x 100
Sales
= 29,02,140 x 100
91,80,000
P./V. Ratio = 31.61 %
4) Margin of safety :-
Mos = Actual sales – sales at BEP
= 91,80,000 – 54,40,150
Mos = 37,33,850
Mos % = 40.67 %
29
30. 15. NAME & ADDRESS OF MACHINERY
& EQUIPMENT SUPPLIERS
1) M/s Quality machine tools
18, M.G. Road,
Nirav Building,
Bangalore – 2.
2) Swastik machine tools
4, Savan chambers,
Pune – 422 002.
3) Applied machinery Ltd.
B-4, M.R. Industrial estate,
Bombay – 25.
4) H. R. Brothers tools Ltd.
84, Navrang pura,
Ahmedabad – 4.
5) Noble Equipments Pvt. Ltd.
320, Lajpat Rai market,
H. R. Industrial area,
Rajkot – 360 001.
30
31. 16. NAME & ADDRESS OF RAW -
MATERIALS SUPPLIERS
1) M/s Patel Powder Ltd.
24/3 – G.I.D.C.
Rajkot Highway,
Morbi – 363641.
2) M/s Multani Chemicals
Station Road,
Thangadh – (Gujarat)
3) M/s Ferro Casting & Chemicals Ltd.
27/p-g, M. G. Road,
Wankaner – 363645
31
32. 17. FUTURE PROSPECT
Cement product having good position now in sense of market,
profit and qualitative production. So far as future is concerned there may rises
also important of “RAJLAKSMI CEMENT INDUSTRY” product like changes
in technology, Government policies, substitute to available, etc.
In near future, we are looking for converting our partnership firm in
to private Ltd. Company, the application for Loan are made with the Bank of
India.
32
