This document provides a business plan for a proposed cold drinks production business. It includes sections on the proprietors' background, justification for the location, market potential, production process, raw materials, implementation schedule, costs, sources of capital, financial projections, and risk factors. The key details are that three partners plan to invest Rs. 3 million to establish a small-scale cold drinks production unit in Rajkot, Gujarat with an expected annual profit of Rs. 1 million.

1. Business plan on
COLD DRINKS
PREPARED BY
Name: - Thumbar Bhavisha
Class: - M.B.A. Sem-III
Enro. No: - 117360592042
Academic Year: - 2012-13
SUBMITTED TO
Dr. Rajesh patel
COLLEGE
N.R. Vekaria Inst. of Business Mgt. Studies,
Junagadh
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2. DECLARATION
I, the undersigned Thumbar bhavisha a student of M.B.A.SEM-III
here by declare that the project work presented in this report is own my work &
has been carried out under the supervision of Dr.Rajesh Patel
This work has not been previously submitted to another university for any
examination.
PLACE :- JUNAGDH
-------------------
DATE :- (THUMBAR BHAVISHA)
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3. PREFACE
M.B.A. course is a special course, which prepares young entrepreneurs,
& it’s very essential that they should have the basic knowledge about how the
small scale business can be started or which type of project is to be submitted
to the banks and other financial institution for the purpose of loan.
One of the subjects namely entrepreneurship and management of small
scale business has covered this aspect with a view to create and develop
entrepreneurial skill among the students.
Today in the growth rate of Indian economy, S.S.I. plays a vital role by
contribution of 40%, to the total national income.
Hence, university has included preparation of such project within the
preview of its syllabus.
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4. ACKNOWLEDGEMENT
It is really a matter of great pleasure for me to present their creative and
practical work. At this stage product every entrepreneur prepares report of
learning and it before starting of actual production.
I would like to express my deep gratitude to prof. Jay Patel for his co-
operation and guidance. Without his support my report would have been very
difficult to complete.
I am also thankful to all those who consisted me in preparation of the
manuscript. I would like to thank my friends who helped me in this project.
PLACE :- JUNAGADH
-------------------
DATE :- (THUMBAR BHAVISHA )
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5. INDEX
SR. PARTICULARS
NO.
1 Introduction
2 Project at glance
3 Proprietor’s background
4 Justification of location
5 Market potential
6 Production process
7 Product usage
8 Raw material
9 Basis & presumption
10 Implementation schedule
11 Fixed cost
12 Variable cost
13 Working capital
14 Total cost of project
15 Sources of capital
16 Cost sheet
17 Trading A/C
18 P & L A/C
19 Balance sheet
20 Risk factor
21 Conclusion
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6. INTRODUCTION
Unemployment is increasing in our country. The large scale industries,
which do not provide wide employment, because they are capital intensive. So,
the small-scale industries must be developing in our country because they are
labour intensive. So, they can provide more employment.
The SSI ensures more equitable distribution of the national income and
they facilitate an effective mobilization of resources of capital & skill. Small
industries are desirable because it is responsible for dispersal of production
units to small towns & villages.
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7. PROJECT AT GLANCE
Name of the unit Cuberoxx pvt ltd.
Registered office Plot no – 228, GIDC, lodhika,
Kalawad road, metoda, Rajkot.
Location of unit Plot no – 228, GIDC, lodhika,
Kalawad road, metoda, Rajkot.
Form of organization Partnership firm
Name of owner Paresh Hinsu
Aryan malhotra
Nilesh kanani
Name of product Cuberoxx
Size of unit Small scale
SSI registration no. Applied for
Subsudy registration no. Applied for
Cost of project 3000000
Means of finance SBI bank
Own capital
Cost of capital 10%
Return on investment 33.25%
Web site www.Cuberoxx.com
E-mail cuberoxx@gmail.com
Since R.O.I. > C.O.C., so this project is viable.
PROPRIETOR’S BACKGROUND
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8. Name Paresh Hinsu Aryan malhotra Nilesh kanani
Age 21 years 22 years 22 years
Address “ Gopal krupa” “ Aryan” “Matru ashish”
Raghuvir society, Astron society, Racecourse park,
Rajkot. Rajkot. Ring road,
Rajkot.
Academic B.B.A.(finance) B.B.A.(marketing) B.E.(mechanical)
qualification
Role in the unit Finance manager Marketing manager Production manger
Financial 25 % of total capital 25 % of total capital 25 % of total capital
contribution
JUSTIFICATION OF LOCATION
Location plays an important role in starting industry. Before starting
any industry entrepreneurs have to take a decision about the location of
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9. industry. They have to select that location where all the facilities must be
available. They have to take right decision about the selection of location
because once a location selected it can not be change in the near future. The
following should be taken into consideration.
1. 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 help in reduction of cost by reducing storing of finished goods, avoid
the cost of transportation, etc.
2. Availability of labour :-
Without manpower no one can start his or her industry. If you have a
machine but not manpower you can not start your industry. So, labour
should be available at cheap rate.
3. Availability of transport :-
It required for assembling of row-material and distribution of
finished product. So, all type of transportation facility should be available.
Thus, all the above factors justify the selection of the location. So,
the selection would definitely contribute to the profitability.
MARKET POTENTIAL
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10. Liberalization of the Indian Economy since July 1991 has given boost to
the industrial development all over the nation. It has given new spirit to
various industries in general and cold drinks industries in special.
COMPETITION:
In the studies made by the promoters about
competition in the market of cold drinks it has been observed that there is low
level of competition prevailing in the market.
The concern has decided to capture the market and achieve its sales
target with the use of following two aspects:
1. Reasonable market price
2. Quality control
The concern has proposed the sale price of its product quite lower than
the prevailing market price. Hence the unit’s product would be more
acceptable by the consumer in comparison to other manufacturers.
MARKETING AND SELLING ARRANGEMENTS:
The firm has developed very wide contacts for the product proposed to
be manufactured. Moreover it has also contacted customers of the proposed
product. Prospective customers are general public so the firm targeted more to
general people.
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11. PRODUCTION PROCESS
Bottle Cleaning
↓
Passes through the filling machine
↓
Putting co2 and water in bottle
And cap the bottle
↓
Checking of the bottle
↓
Store housing
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12. MANUFACTURING PROCESS IN
DETAILS
1. Bottle cleaning:
In the manufacturing process of colddrinks first step is to
cleaning the bottle by putting water in it.
2. Passes through the filling machine:
After cleaning the bottle it passes through the filling
machine where mixture of assens, sugar and other material is put in it in
certain quantity.
3. Putting co2 and water in bottle and cape the bottle:
This is the third step. In this step co2 and water is put in the
bottle and than cap the bottle is being done by machine.
4. Checking the bottle:
After caping the bottle it is being passes through the
checking defected bottle is being put in side.
5. Store housing:
Last step in process is storing the bottle in store house.
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13. PRODUCT USAGE
The finished product of the proposed project is cold drinks. The job
passes through different manufacturing processes before it is converted into
finished product.
Cold drinks have wide use in general public as a drink. So, we can say
that there is wide scope of demand for the cold drinks.
So, ultimately by observation it can be said that there is wide use of cold
drinks, which suggests big demand in the market.
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14. RAW MATERIAL
The raw material is the base for the production. The required raw material is
co2, assens, sulphuric acid, sytric acid, sytric, sugar, water.
The raw material of this unit is easily obtained from the market. The raw
materials required in this unit are:
 co2
 assens
 sulphuric acid
 sytric acid
 sytric
 sugar
 water
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15. BASIS AND PRESUMPTION
No. Particulars Particulars
1 Working days 6 days in week & 300 days in year
2 Shift Dual shift
3 Working hours 8 a.m. to 6 p.m.
4 Government policy Liberal
5 Banking rates 9% on term loan
6 Depreciation Building 10%
Furniture 10%
Plant & machinery 10%
Bottle & carat 10%
Other assets 10%
Vehicle 10%
7 Installed capacity 200000 unit
8 Employment potential 25
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16. FIXED ASSETS
No. Particulars Amount
1 Land 1250000
2 Building 200000
3 Furniture 50000
4 Other assets 50000
5 Machinery 510000
6 Bottle and carat 750000
7 Vehicle 1000000
Total 3810000
VARIABLE COST
No. Particulars Amount
1 Raw material 7228000
2 Direct labour 633600
3 Other expenses 378000
Total 8239600
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17. WORKING CAPITAL REQUIREMENT
No Particulars Amount Amount
(per months) (per Annum)
1 Raw material 602333 7228000
2 Staff & labour 88000 1056000
3 Other expenses 48333 630000
Total 738666 8914000
TOTAL COST OF PROJECT
No. Particulars Amount
1 Fixed cost (purchase fixed assets) 3810000
2 Working capital 790000
Total 460000
SOURCES OF CAPITAL
NO Particulars Rate Amount
1 OWN CAPITAL 8% 3000000
2 Borrowed capital
S.B.I. 9% 1000000
3 Deposit received from dealer - 600000
Total 4600000
PROJECTED COST SHEET
Particulars Amount G.Total
Raw material 7228000
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18. Direct labour 450000
Direct expenses 140000
Prime cost (A) 7818000
Salary 288000
Repairs 20000
Depreciation 246000
Factory cost (B) 554000
Salary to office staff 222000
Interest on capital 330000
Indirect expenses 70000
Depreciation 10000
Office & admn. Cost (C) 632000
Cost of production(A+B+C) 9004000
Indirect salary 96000
Advertisement expenditure 300000
Transportation 100000
Selling and distribution cost 496000
Cost of sales 9500000
Sales 10500000
Profit 1000000
PROJECTED TRADING ACCOUNT
Particulars Amt. Particulars Amt.
To purchase a/c 7228000 By sales a/c 10500000
To electricity 3 phase a/c 75000
To water charges a/c 15000
To freight inward a/c 50000
To salary a/c :
Skilled labour; 210000
Unskilled labour; 240000 450000
Gross profit 2682000
10500000 10500000
PROJECTED PROFIT & LOSS A/C
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19. Particulars Amt. Particulars Amt.
To salary a/c 606000 By trading a/c 2682000
(gross profit transferred)
To indirect exp a/c 490000
To depreciation a/c:
Building 20000
Plant & machinery 51000
Furniture 5000
Vehicle 100000
Other assets 5000
Bottle & carat 75000 256000
To interest on capital a/c 330000
To income tax a/c 205000
To net profit a/c 795000
2682000 2682000
PROJECTED BALANCE SHEET
Particulars Amt. Particulars Amt.
Capital accounts : Fixed assets :
Paresh hinsu 1000000 land 1250000
Aryan malhotra 1000000 Building 200000
Nilesh kanani 1000000 Less : dep. 20000 180000
Secured loans: Plant and
machinery:510000
S.B.I. bank 1000000 Less: dep. 51000 459000
Unsecured loans: Furniture & fixtures
50000
Deposit received from 600000 Less : dep. 5000 45000
dealer
Accounts payable 160000 Vehicle 1000000
Net profit 795000 Less : dep. 100000 900000
Bottle & carat 750000
Less : dep. 75000 675000
Other fixed assets 50000
Less : dep. 5000 45000
Accounts receivables 146000
Bank balance
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20. S.B.I. bank 1000000
Cash in hand 900000
5555000 5555000
RISK FACTORS
In modern business world there is no existence of any such business
which has not face any difficulties in terms of risk. Every business firm has to
deal with risk factors such factors which are affecting in the preset situation of
project are:
COMPETITION:
Existing competition from the other manufacturers may cause the growth
of sales and there is a risk of decline in sales and fall in demand.
GOVERNMENT POLICY:
Government policy also affects the business decisions in terms of price
changes, tax rate changes, production limitation etc.
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21. CONCLUSION
Following are the conclusion that the firm should take in to consideration for the future
objectives.
1. The firm should increase the no of other cold drinks flavour in its portfolio.
2. Selling and marketing efforts needs to be increased and also requires different
mediums for the promotion of the product.
3. The firm should charge the lowest possible price for its product to increase the
sales.
2. Wastage of material should be minimized to its optimum level.
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