Feasibility Study

A
Feasibility Report
On
Drinking Water Solutions
Group Name: ‘Q’
T.Y. M.B.A.
2012-2013
Submitted to:
K.S. School of Business Management,
Gujarat University,
Ahmedabad-380 009

Page I
CERTIFICATE
This is to certify that members of Group: Q of Third Year MBA of K. S. School
of Business Management and Research, have successfully completed their
feasibility report on “Drinking Water Solutions” for academic year 2012-13
and have duly submitted the project report to the institute.
Date of submission: Project Guide
March 22, 2013 Ms. Shamina Ansari
(Name and sign)
K. S. School of Business Management,
Gujarat University,
Ahmedabad-380 009.

Page II
Group Members
Sr. No. Name Roll No.
1 Vikas Pansari 3112
2 Jigar Samani 3124
3 Nisargi Sanghvi 3125
4 Kushal Shah 3130
5 Pankti shah 3132
6 Parth Solanki 3141
7 Shreya Tripathi 3145
8 Parth Domadia 3161
9 Zeel Shah 3206
10 Vijayendra Thakkar 3215

Page III
Acknowledgement
“There are 3 Ds in life: Desire, Determination, and Dedication. We need all
three to go somewhere... but it all starts with fourth D vis. Dreams.
Yes, these 3 Ds i.e. Desire to create something unique, Determination to
surpass all the hindrances and pure Dedication towards the goal made our 4th
D i.e. Dream “SAP Packaged Drinking Water” come true.
Before moving further, we would like to thank special persons without whom
this feasibility report could not have been completed.
First and foremost, we would like to express our gratitude to our college K.
S. School of Business Management and the Director Mrs. Sarla Achutan
for giving us this golden opportunity of making a project on the feasibility
study as part of our curriculum activity. We are highly thankful & indebtedly
grateful to our project coordinator Prof. Shamina Ansari for her assistance
and co-operation to us. It was really a fruitful and a memorable experience
working with her. We all are very much thankful to all other faculty members
also who spent their precious time to take this project at apex. We cannot
afford to forget our financial adviser Mrs. Hiral Parikh for helping us not to
face financial crises (on paper, of course).
We take this opportunity to thank all the members, employees and workers
of Excel Filtration Ltd. And Atithi Gokul Food and Beverages for giving
us enormous help, support and provide all needed information. We would like
to thank all the respondents for their warm-hearted response.
As it is not possible to name individually every one of those who helped us,
let us suffice to say that their co-operation was of immense use to us & we
thank them all.

Page IV
Preface
“An array of business solutions stand testimony to the fact that good
business values, pillared by expertise can work wonders”.
Solutions, which are crafted from a solid base of developing and
manufacturing, generate reliable products and superior service through
which, continual measurement of customer satisfaction is offered.
We have made a feasibility report on the establishment of the Water
Processing Unit for Drinking Water Solutions. The name of our unit is Sap
Packaged Drinking Water. We have taken into consideration technical,
marketing & financial feasibility of the organization in our project.
For the technical feasibility we have taken a visit at Atithi Gokul Food and
Beverages at Gota, which manufactures mineral water. From there we came
to know the machineries required for the production, Process of mineral
water & other related information.
In the marketing feasibility we have done the survey of customers & dealers.
By analyzing the survey we found the requirement of the customers and the
potential market of the mineral water. We also considered the marketing
strategy for launching our product.
The most important of all was the financial feasibility. We estimated all the
expenses, which are likely to incur for the establishment of water processing
unit.
These all things are discussed in detail further in the project report.

Page V
Table of Contents
Acknowledgement…………………………………………………………………….III
Preface……………………………………………………………………………………….IV
Introduction.................................................................... 1
Feasibility Study ............................................................................... 2
Selection of Project -- Reasoning......................................................... 3
Project At a Glance .......................................................................... 4
History of Mineral Water .................................................................... 6
Business Environment (PESTEL Analysis) ............................................. 7
Legal Feasibility............................................................... 9
Partnership Deed .............................................................................10
Tenancy Agreement .........................................................................15
ISI Certificate Procurement ..............................................................20
Product Evaluation ......................................................... 22
Feasibility of Product .......................................................................23
Features.........................................................................................23
Market ...........................................................................................23
Quality Aspects................................................................................23
Brand.............................................................................................23
Technology Selection........................................................................24
Technical Feasibility ....................................................... 25
What is Technical Feasibility ..............................................................26
Location Analysis .............................................................................27
Site Layout .....................................................................................28
Specifications of Machinery ...............................................................36
Manufacturing Process Flow Chart ......................................................42
Plant Layout....................................................................................43
Human Resource Feasibility…………………………………………………….49
Organization Chart...........................................................................50
Job Description & Job Specification.....................................................51

Page VI
Marketing Feasibility....................................................... 59
Market Research..............................................................................61
4 P’s of Marketing ............................................................................64
Survey Analysis ...............................................................................80
Financial Feasibility .......................................................100
Cost of Project...............................................................................102
Means Of Finance...........................................................................102
Cost of Machineries ........................................................................103
Cost of Furniture & Fixtures.............................................................103
Cost of Miscellaneous Assets ...........................................................104
Statement of Depreciation...............................................................104
Statement of Working Capital ..........................................................106
Statement of Capacity, Production & Sales ........................................107
Design of Salary Structure ..............................................................107
Statement of Overheads .................................................................108
Factory Overhead Statement...............................................................108
Administrative Overhead Statement .....................................................108
Selling & Distribution Overhead Statement............................................108
Cost Sheet....................................................................................109
Profit & Loss Statement ..................................................................110
Balance Sheet ...............................................................................111
Cash Flow Statement......................................................................113
Break Even Analysis .......................................................................114
Evaluation of Project .....................................................115
Capital Budgeting ..........................................................................116
Ratio Analysis................................................................................118
Conclusion...................................................................125
SWOT Analysis .............................................................................126
Annexues
Bibliography..................................................................................127
Webography..................................................................................128

FEASIBILITY STUDY
What is a feasibility report?
 A report, which projects the practical viability of a venture with respect
to different dimensions, is called a “FEASIBILITY REPORT”.
 By feasible we mean that the venture must be practically possible with
respect to the following aspects.
1. Technical:
The technology must be such that it must use the available resources
in the most potential efficient manner & at the same time it should be easily
obtained & practically possible implications in the different phases of work
process.
2. Marketing:
Just producing a product is not an ultimate end but rather a beginning.
It is important that a product is accepted and adored by customers. The job
of marketing department is to attract customers to buy the product. In order
to do so marketing department will have to check whether their strategies
are viable in terms of effectiveness in terms of economy.
3. Financial:
A venture is carried out with the availability of finance in the hands of
entrepreneurs. An entrepreneur has to see whether the amount invested is
viable in terms of returns, profits and gains. Careful inspection of all the data
related to balance sheets, cash flow aspects, depreciation, description about
loan, and Insurance etc. falls under financial feasibility.
4. Social:
Social feasibility refers to welfare of mankind that stands in relation to
each other; it means public interest of society. In short, a venture is viable
only when it does not harm mankind.
The above 4 aspects should be effectively formulated.

SELECTION OF PROJECT - REASONING
Each and every individual, firm, industry and nation wants to be ahead of
another with the help of adequate resources, enthusiastic and risk taking
entrepreneurs, and adequate and amiable labour force, proper transportation
and other Infrastructural facilities along with the line help the business units
to bloom.
With the same hope of bright future, we propose to venture ourselves in the
field of Packaged Drinking Water where the scope of development is
extended up to the horizons.
Reasoning is an important aspect in everything that is happening around us.
Even while selecting our product we had a reason behind it.
The consumption of mineral water is linked with Public Health as the concept
has virtually been imported from the Western Media. The necessity and
hygienic nature of the product has led to an increase in its consumption in
mainly the High Income Grade people & Tourist places. The huge potential
for Tourism is virtually limitless. The mineral water is one of the important
item which is directly consumed by people all over the world. Due to
consideration of Health view point, consumption of Ordinary Water is
gradually decreasing. Ordinary water contains many Toxic Elements,
impurities which some time turns Fatal. Now days, people are generally
becoming aware and sensitive to consume clean Pure Water, wherever it is
becoming available. Some time people have to suffer from different diseases
as a result consumption of Mineral water is fast increasing.
Packaged Drinking Water is principally consumed in Hotels, Hospitals, Tourist
Place, Party Functions & Residents, where good quality pure water is required
for potable purposes.
We found that the Packaged Drinking Water industry is having continuous
and steady growth rate. We even found that there is full-fledged demand in
the market for mineral water and higher profit margin in it.

PROJECT AT A GLANCE
 Name of the Firm : SAP Packaged Drinking Water
 Factory Address : Plot no. – 25,
Gota circle,
Nr. Gota Highway,
Ahmedabad.
 Constitution : Partnership Firm
 Date of Incorporation : 1st April, 2013.
 Status of Industry : Small Scale Industry
 Product: : Packaged Drinking Water
 Cost of Project : Rs. 57,14,125
 Means of Finance : Partner’s Capital (Rs. 60,00,000)
 Working Capital : Rs. 9,82,680
 Break Even Point : 3792556
 Pay-Back Period : 2years and 4 months
 Current Ratio : 7.08

LOGO
TAGLINE
“Have A Sip of Sap From The Nature’s Lap”
WHY SAP?
SAP refers to the vital fluid required for human body.

HISTORY
Humans have been storing and distributing water for centuries. Before, when
people lived as hunters, river water was applied for drinking water purposes.
When people permanently stayed in one place for a long period of time, this
was usually near a river or lake. When there were no rivers or lakes in an
area, people used groundwater for drinking water purposes. This was
pumped up through wells.
When the human population started growing extensively, the water supply
was no longer sufficient. Drinking water needed to be extracted from a
different source.
About 7000 years ago, People of that time stored water in wells that were
used as sources. People also started to develop drinking water transport
systems. The transport took place through simple channels, dug in the sand
or in rocks. Later on one also started using hollow tubes. EGYPT used hollow
palm trees and CHINA and JAPAN used bamboo strunks. Eventually one
started using clay, wood and even metal. In Perzia people searched for
underground rivers and lakes. The water went through holes in rocks into the
wells on the plains.
Around 3000 B.C., the city of Mohenjo-Daro (Pakistan) used a very extensive
water supply. In this city there were public bathing facilities with water boiler
installations and bathrooms.
In ancient Greece spring water, well water, and rainwater were used very
early on. Because of a fast increase in urban population, Greece was forced
to store water in wells and transport it to the people through a distribution
network. The water that was used was carried away through sewers, along
with the rainwater. When valleys were reached, the water was lead through
hills under pressure. The Greeks were among the first to gain an interest in
water quality. They used aeration basins for water purification.
WATER AND HUMANS….
* The human body is more than 60 percent water. Blood is 92 percent
water, the brain and muscles are 75 percent water, and bones are about 22
percent water.
* A human can survive for a month or more without eating food, but only a
week or so without water.

Business environment
Business organization is just like a human being. It cannot survive alone. It
is made for the people and by the people. Environment includes all the
conditions and circumstances surrounding and affecting the total or any part
of the organization. The success of the organization depends to a large
extent on how well it adapts and synchronies with the internal as well as the
external environment.
A scan of external environment in which the firm operates can be expressed
in terms of the following factors:
 Political
 Economical
 Social
 Technological
 Legal
The acronym PESTEL is used to describe a framework for the analysis of
these macro environmental factors.
 Political Environment:
General political atmosphere, particularly political stability is very
important for the successful and smooth operation of the business. It
covers those factors which restrain or facilitate the business through
the government action. It may include political atmosphere, political
parties, government administration, political stability etc.
Our firm will also be influenced by the political changes as
others. A change in administration at the centre may also lead to a
change in excise & sales tax rates, which may not be in favour of the
enterprise.
 Economical Environment:
As far as economic aspect is concerned the entrepreneur of the
packaged drinking water industry has to fight the tough competition.
However, they are all together two kind of sector i.e organize sector
and unorganized sector. The companies like bisleri, oxyrich, aqua fina
etc. can be included in the organized sector and the local companies
are included into unorganized sector.
The success of a product depends on effective consumer demand
which is dependent on the purchasing power of people. Since packaged

drinking water is available at affordable prices, there is a continuous
increase in the demand of packaged drinking water.
 Social Environment:
Cultural and social environment includes expectations of the
society from the business, attitude of society towards structure,
responsibility & organizational positions, customs, traditions &
conventions, class structure & labour mobility & level of education.
Now days, people are becoming aware and sensitive to consume
clean water, wherever it is available. Some time people have to suffer
from different diseases as a result consumption of mineral water is fast
increasing.
Our enterprise will not be causing any damage to the society.
There would be no pollution involved in manufacturing of Mineral
water.
 Technological Environment:
Technological innovations are introduced for higher productivity,
lower costs & more revenues. Technology refers to sum total of
knowledge providing ways to do things. Organizations should give
constant consideration to the manner in which innovations may affect
their product or services & also their internal operational efficiency.
The firm that moves with latest technology can excel their growth,
that’s why our firm has decided to install latest technological plants &
machineries in its production process.
 Legal Environment:
Legal environment refers to the legal rules and regulation which
an entity needs to comply with. Ours is a partnership firm which is
governed by partnership act 1932. The registration of a partnership
firm is voluntary. We got our partnership registration from the office of
state registrar of Gujarat. We have also prepared partnership deed to
govern our work.
Our product is concerned with the health of the people, so
government regulation cannot be avoided.

PARTNERSHIP DEED
This agreement of partnership made on April 1, 2013 at Ahmedabad by
and between:
1. Parth Solanki.
4, Saraswati park,
Hansol road,
Ahmedabad-75.
2. Vijayendra Thakkar.
754/6, Ambawadi,
Sardarnagar, airport road,
Ahmedabad-75.
3. Shreya Tripathi.
12, New Suryanarayana society,
Ghatlodia,
Ahmedabad-61.
4. Nisargi Sanghvi
105, Nandishwar apartment,
Paldi,
Ahmedabad-54.
We the above partners have decided to commence the business of
manufacturing and/or trading of PACKAGED DRINKING WATER under the
name and style of M/S SAP PACKAGED DRINKING WATER with effect
from April 1, 2013.
And whereas the above parties here to being the respective partners of
this partnership herein after referred to as firm.
And whereas it is deemed desirable that the terms and conditions to
which the partners have agreed mutually to carry on the business in
partnership may be reduced into writing.

HENCE THIS DEED OF PARTNERSHIP WITNESSED AS
UNDER:
Name:
The business of the firm shall be carried on under the name and style
of M/S SAP PACKAGED DRINKING WATER, however partners shall be
entitled to change the name of the firm as may be mutually agreed upon.
Place of the Business:
That the principal place of the business of the firm shall be situated at
Plot no. 25, Gota Circle, Nr. Gota Highway, Ahmedabad. But the
partners shall be at liberty to shift it to any other place Or places and to open
branch or branches at any other place or places as may be agreed upon.
Nature of Business:
The nature of business of the firm shall be manufacturing and/or
trading of PACKAGED DRINKING WATER. However the partners shall be
entitled to carry on any other business or businesses under this partnership
which they may decide mutually.
Commencement:
This partnership shall be deemed to have been commenced on and
with effect from April 1, 2013.
Duration:
That the duration of this partnership is not fixed and it shall be
partnership “AT WILL”.
Accounting Year:
The accounting year of the company shall commence from April 1 and
will end on March 31 every year. The first accounting year of the firm will be
from 1-04-2013 to 31-03-2014.
Accounts And Records:
Proper and regular accounts and records of the affairs and transaction
of the firm shall be maintained and kept at the principal place or any other
relevant or appropriate place or places in accordance with the requirements
of the business of the firm.

Final Accounts:
The balance sheet as on the last day of the accounting year and profit
and loss account for the year shall be prepared at the end of each accounting
year. The profit and loss as the case may be of the year shall be worked out
and be allocated between the partners as per the profit –loss sharing ratio.
Capital:
The initial capital of the firm shall be Rs. 60 lakhs, which shall be
contributed by all the partners equally.
Drawings:
That the drawing shall be made by partners as many times in the year
as per the wish to the partners taking into consideration the respective
accounts.
Borrowing Power:
That the firm shall be entitled to secure deposits, borrow money and
take loans from banks, financial institution and other corporate bodies or non
corporate parties, the partners can also provide loans to the firm.
Bank Account:
That bank account in one or more banks will be operated in the names
of the firm by any one or more of the partners and they shall be authorized
to avail all types of facilities in the name of the firm that are generally
allowed by the banks. Partners are also entitled to authorize any other
person for operation of bank account through a power of attorney signed by
all the partners.
Remuneration:
It is hereby agreed that in consideration of the working partners
keeping themselves actively engaged in the conduct of the affairs of the firm
as working partners they shall be entitled to draw remuneration w.e.f. April
1, 2013 as under.
A) The remuneration payable to the working partners shall be
calculated as percentage of the book profit for each accounting year
(first accounting year from 1-4-2013 to 31-3-2014 and subsequent
accounting year of 12 months) in the following manner.

NAME REMUNERATION
1. Parth Solanki 40000.00 Per month
2. Vijayendra Thakkar. 40000.00 Per month
3. Shreya Tripathi 40000.00 Per month
4. Nisargi Sanghvi 40000.00 Per month
For the purpose of above calculation book profit shall be calculated on
basis as defined in explanation 3 to section 40(b) of the income tax act, 1961
or any other applicable provision as may be in force for the income tax
assessment of the partnership firm for the relevant accounting period.
B) In case of loss remuneration will be paid to the working partners
as paid in the case of profit.
The partners shall be entitled to increase the above remuneration and
may agree to pay remuneration to other working partner of partners as the
case may be. The parties here also agree to revise the mode of calculation,
the above said remuneration as may be agreed to by and between the
partners from time to time. However nothing herein contained shall preclude
the working partners from withdrawing any amount standing to the capital
and/or current or loan account. Yearly share of profit for the relevant
accounting year would be in such a manner as may be decided by the
partners by mutual consent.
Interest:
We provide interest on capital at the rate of 10% p.a on initial capital
investment.
Share in Profit or Loss:
The profits and loss will be distributed equally among all the partners.
Modification:
That the partners shall be entitled to modify the above terms relating
to remuneration, interest etc. payable by executing supplementary deed and
any such deed when executing shall have effect, unless otherwise provided,
from the first day of the accounting period in which supplementary deed is
executing and the same shall form part of this deed of partnership.

Arbitration:
That any dispute of difference of opinions among the partners as may
arise during the continuation of this partnership shall be referred to
arbitration and in such cases the provision of INDIAN ARBITRATION ACT,
1940 shall be made applicable.
Application of Act:
That with respect to all other matters not specified herein connected
with this partnership regard shall be had to the law of partnership, for the
time being in force.
Amendment and Alteration:
That the partners shall by mutual, oral and written agreement is at
liberty to amend, alter, vary or add to the aforementioned terms and
conditions.
After hearing the translation of this partnership deed and fully
understanding the terms and conditions, we the parties here of put our
hands to this deed on the date, month and year.

TENANCY AGREEMENT - Legal Form
ARTICLES OF AGREEMENT made at_Ahmedabad on FIRST day of
APRIL,2013, BETWEEN Mr. Ramanbhai Ozha an Indian Inhabitant, residing
at Ahmedabad hereinafter referred to as "THE LANDLORD " (which
expression shall, unless it be repugnant to the context of meaning thereof,
be deemed to include his heirs, executors, administrators and assigns) of the
ONE PART
AND SAP Packaged Drinking water solutions" Adult, Indian Inhabitant,
residing at Ahmedabad " hereinafter called "the TENANT " OF THE Other part.
WHEREAS the Landlord is the owner and is well and sufficiently
entitled, seized and possessed of all the piece and parcel of land and building
situated at Plot No 25, Near Gota Circle, Gota Highway, Ahmedabad.
AND WHEREAS the said Tenant has approached the Landlord and
requested him to let out the said premises for the purpose of carrying on the
business of packaged drinking water in the said building and requires the
said premises for the said business.
AND WHEREAS the parties hereto are reducing the said agreed terms
in to writing.
NOW THEREOF THIS INDENTURE RECORDS that the Tenant is
accepted as Landlord's monthly tenant is accepted as Landlord's monthly
tenant and the said Tenant is Landlord's monthly tenant is in respect of Plot
No.25, Near Gota Circle, Gota Highway, Ahmedabad from 1st day of APRIL,
2013 on the following terms and conditions:-
The landlord doth and hereby let to the Tenant as his monthly tenant
in respect of Plot No.25, Near Gota Circle, Gota Highway, Ahmedabad and
the Tenant hereby agrees that he has taken on the said premises as monthly
tenant of said premises of the said Building on the terms and conditions
hereinafter records. The monthly standard rent of the said premises shall be
Rs 50000/-(Fifty thousand Rupees only) per month inclusive of all permitted
increases from 1st day of April, 2015@10% p.a. but which will be exclusively
of any kind of electric charges.

THE TENANT HEREBY AGREES AS FOLLOWS:-
1. To pay monthly rent due in the next month on or before the 10th
day of each month at the Landlord's place whether demanded or not;
2. To pay all charges for electric energy and water consumed on the
demised premises;
3. To pay all kinds of taxes, permitted increases, repair cess, which the
tenant or occupier of the premises are by law bound and liable to pay on
demand at any time;
4. Not to do or suffer to be done in or about the demand premises
anything contained which may be or become nuisance, annoyance or cause
damages to the neighbouring owners, tenants, occupiers of the said building.
5. Not to use the said Premises for any illegal or immoral purposes or
any other purposes prohibited by the local / municipal authorities.
6. Not to cut or injure any wall or timber, or any other parts of the
demised premises or make any changes, alterations, additions on the
demised premises without first obtaining the written consent of the Landlord
and any change, alterations, additions, fittings made with such written
consent of the Landlord shall become and be considered the property of the
Landlord after they are made, the Tenant shall not be entitled to remove the
same either before or after the expiration of the Tenancy.
7. Not to sub-let, re-let, assign or transfer or part with the possession
of the demised premises or any part thereof too any persons.
8. Not to store, keep stock any goods, articles, in the passage or
compulsory open space or on road save and except in course of goods,
articles taken in and brought from the demised premises.
THE LANDLORD HEREBY AGREES AS FOLLOWS:-
9. That the Tenant paying rent herein before reserved and observing
and performing the stipulations and averments on this part herein before
contained and shall quietly enjoy the demised premises without interruption
by the landlord or any person or persons lawfully claiming through, under or
in trust for him.
10. To pay and discharge all existing and future rates and taxes
assessment that may be imposed or charges upon the demised premises by
the Ahmedabad Municipal Corporation, Government of Gujarat, or any other
authority including all increases payable by the Landlord consistent with the
covenants by the Tenant in that behalf herein before stated.

11. That the Landlord and his agent, contractors, servants or any
intending purchaser or purchasers or tenant authorised by the Landlord shall
have full liberty to inspect demised premises at any reasonable hour to view
the conditions thereof and to effect such repairs as the Landlords is required
to do pursuant to his covenants in that behalf herein contained and to carry
out any work and the Tenant shall allow the same to be done without any
objection.
12. The Landlord shall not be responsible for any damages or injury
whatsoever caused by pulling down the wall or floor whether by fire, leakage,
accident,, rains, white-ants or any explosion or bursting or any water or gas
pipe line or electric installations or circuits.
13. The Tenant shall, on execution of this Agreement, deposit with the
Landlord one month rent at the rate of Rs 50000/-.(Rupees Fifty thousand
rupees only) for the one month which the amount shall l continue to remain
as deposit and to be adjusted in payment of the monthly rent for the last
month of the tenancy. The said deposit amount of one month rent shall not
carry any interest.
14. Tenant hereby agrees and undertakes that the said rent of
Rs.50000/- is the STANDARD RENT of the said let out to him inclusive of all
permitted increases imposed by the concerned authority from time to time
and demanded by the authority from time to time and demanded by the
authority hereinafter which he is bound and liable to pay to the Landlord on
demand.
15. The Tenant hereby agrees to abide by all the terms and conditions
printed on the rent bill, which is part and parcel of this Agreement.
16. The Tenant hereby agrees and confirms that the said demised
premises has been let out to him for the purpose of Residence only and the
Tenant shall not change the user of the premises under any circumstances.
IN WITNESS WHEREOF the parties hereunto set and as subscribed their
respective hands and seals the day and year hereinabove written.

SIGNED SEALED AND DELIVERED by
The within named Mr. Ramanbhai Ozha
the LANDLORD,
SIGNED SEALED AND DELIVERED
By the within named SAP Packaged drinking water solutions
the TENANT.

Certificate of Consent of Lessor for
improvement in the Factory
Date: 01/04/2013
The lessor Mr. Ramanbhai Ozha, named in the agreement give consent to the
lessee SAP Packaged Drinking Water Solutions, named in the agreement for
improving in the factory given whether installation or additional construction,
as the case may be, for purifying the water used for drinking without
harming to environment.
Authorized Signature:
1) Lessor: Mr. Ramanbhai Ozha
--------------------------------
2) Lessee: Sap Packaged Drinking Waters
---------------------------

Procurement of I.S.I. Certificate
BIS is the national regulatory authority for certification scheme. This
scheme is regulated by BSI Act, 1986 and rules and regulation made under
this Act.
Procedure to get license:
Procedure to get this license to use standard mark is as follows:
1. The manufacturers, who want to use the standard mark, have to apply
in three copies of specified Form and pay specified fee. Form is
available at Bureau office.
2. There should be different application for each product, categorized
under certain rules and regulation.
3. As soon as BSI gets application, it makes arrangement for primary
inspection of the factory to check the laboratory facilities and to see
that how the quantity is implemented during the production process,
sample item are taken for check, in independent laboratory to satisfy
that items are according to the rules and regulation or not.
The applier has to bare the expenses for the sample items as well as
for laboratory test. All the information received during primary
inspection and information got by BSI afterwards is kept confidential.
4. The regulation which is necessary for applier to get the license and top
use standard mark and to regulate it direction that structure for testing
and inspection is prepared by BSI and the firm is informed about that
the rate of fees for quality mark.
5. The license to used standard mark is given only when…
a. The applier has all the testing equipment for quality check.
b. The sample is according to Indian rules and regulation.
c. The applier gives his consent for testing and inspection scheme
and fee for quality mark.
6. The producer becomes registered when all the all items are approved
as being made according to Indian rules and regulation.

FEE STRUCTURE:
The applier has to pay the fees to BSI as follows:
1. Application fee for Rs. 1000 which is not refundable.
2. The expenses made on inspection in independent laboratory before giving
license.
3. Annual license fee for Rs. 1000 per license.
4. Renewal application fee for Rs. 500 per application. When license is to be
renewed.
Fees for quality mark is determined and informed from time to time.
Licenses required for running the business:
 I.S.I. Mark certificate
 P.A.N. Card
 VAT No.
 Factory License

Product Evaluation
1. Feasibility of Product:
Our company manufactures Packaged Drinking Water. In today’s
era, people are becoming more health conscious. People are becoming
more sensitive to consume clean pure water. This has led to an
increasing demand in packaged drinking water industry. Hence, our
product is feasible as it caters to the growing demand of industry.
2. Features:
SAP Packaged Drinking Water will be available in different sizes
to cater all the needs of people in various segments. It will be available
in 250ml pouches, 200ml pet bottle, 1litre bottle and 20litres jar. Our
Mineral Water is also rich in oxygen which retains purity of water for a
long time.
3. Market:
It’s principally consumed in Hotels, Hospitals, Tourist Place,
Party Functions & Residents, where good quality pure water is required
for potable purposes. It is also marketed at places & regions, where
hygienic drinking water is not freely available.
4. Quality Aspects:
As we want to establish ourselves as a reputed brand in the
market, we take utmost care of quality of water provided to the
customers. To maintain quality standards, purified water before
packing is tested in chemical lab and micro-biological lab. Various tests
are performed on purified water and after clearing through all tests,
then only the mineral water is packed in pouches, pet bottles and jars.
5. Brand:
Our task is to establish the brand name ‘SAP’ in the every
corner of Ahmedabad as our market is limited to Ahmedabad only.
Today Consumer is the king of the market and he prefers branded
products more. Hence if the end-consumers are satisfied with our
product, then and only we will be considered to be the successful
player in the market.
Moreover, it’s a well-known fact that one satisfied customer will
bring ten more customers by word- of- mouth. Thus, we will be getting
more and more customers by establishing our brand name in the
market and also compete with other players successfully.

6. Technology Selection:
There are mainly two types of technologies:
1. Labour intensive technology i.e. manual technology.
2. Capital intensive technology i.e. automatic machine technology
The comparative analysis of the technology selection is as
follows:
Labour and time:
Manual technology mainly depends on manual work. In the
labour intensive technology, less machines are required while in capital
intensive technology, all the functions are done automatically by the
machines. As far as the time duration is concerned, manual technology
is very time consuming compared to machine technology.
We have adopted a mixture of both i.e. capital intensive as well
as labour intensive technology. But there is a high proportion of capital
intensive technology as compared to labour intensive technology in our
firm. Because we have adopted fully automatic machines for packaged
drinking water and labour is just required for washing, filling and
capping of jars, making a pack of pouches, arranging the pack of
bottles and dispatching the goods.

What is Technical Feasibility?
Technical feasibility study of any project is generally based on the nature and
the size of the project.
This phase of feasibility study includes – requirement of plant, machinery and
equipments, utilities, miscellaneous fixed assets, preliminary site, building
and interior design work etc. It also studies production process, location
analysis.

LOCATION ANALYSIS
To make the industry proceed faster and to make the business
economically as well as socially viable, the very important aspect for that is
none other than its location i.e. the selection of the sight of the plant. Thus,
location decision plays important role in the better prospect for the growth
and development of business.
Location of plant or industry means a scientific choice of a region and
specific site in the region where the business unit is to be started. When we
take decision about the location of the unit it is for the life time. So we have
to consider all the social, economical factors which are affecting the unit.
We have decided to establish our production unit in Gota.
1. Site Address:
SAP Packaged Drinking Water,
Nr. Gota Circle,
Gota highway,
Ahmedabad.
2. Pre-Conditions required for selecting location:
1. The plot must be of 2000 sq. feet or more.
2. 3 phase power connection must be there.
3. There must be bore well connection near the location.
4. Land must be NA-NOC clear.
5. There must be no chemical wastes surrounding the factory.
3. Reasons for selecting location:
1. The main reason for selecting this location is easy availability of
feed water which is the main raw material in our industry.
2. All the above mentioned pre-conditions are satisfied at this
location.
3. Land is available at affordable rates.
4. The location is equipped with essential infrastructural facilities like
roads, drainage, water supply and street light.
5. The truck and tempo owners offer transportation facility of raw
materials and finished goods from these locations to any part of
Ahmedabad at cheaper rates. Power and labour are easily
available.

Details of site layout
1. RO Plant room:
 RO plant room is spread in area of (28’-5”x20’9”) sq. ft.
 It occupies the fully automated RO plant along with
product storage tanks.

2. Chemical Testing Laboratory:
 Chemical testing laboratory and micro-biological testing
laboratory is spread in area of (20’x10’-3”) sq. ft.
 Here purified water through ro plant is first tested by
technicians before packing process.
 Various numbers of tests are performed by technicians to
maintain the purity of water.

3. Jar washing room:
 Jar washing room is spread in area of (5’x3’) sq. ft.
 20 litres jar are washed and cleaned by labour using jar
washing machine.
 The jar is first washed with hot finished water.
 Then the jar is washed with cold finished water.
 And then it is send to the jar filling room.

4. Jar filling room:
 Jar filling area is spread in area of (4’-7”x3’) sq. ft.
 The jars which have been washed by jar washing machine
are brought to this room for mineral water filling.
 Workers fills the 20 litres jar and then capping is also
done manually by workers.

5. Pouch Filling room:
 Pouch packing room is spread in area of
(17’-6”x10’-3”) sq. ft.
 Mineral water is packed in pouches by pouch packing
machine.
 The pouches are counted by workers and then a packet of
100 pouches is made by them.
 When the pouches are being packed, the cabin is kept
closed and even the fan is also kept switched off.

6. Pet bottle Filling room:
 Pet bottle filling room is spread in area of (22’x10’-3”)
sq. ft.
 It has pet bottle filling machine which is used to wash &
clean the bottles, fill mineral water in it and also does
capping of it.

Specification of Machinery
1. Mineral Water Plant (RO Plant)
 Mineral water plant is purchased from Excel filtration pvt. ltd.
 The cost of mineral water plant is Rs 4.85 lakhs.
 The capacity of plant is 1000 LPH(Litre Per Hour).
 Mineral water plant consists of following parts:
 PSF
 ACF
 Anti Scalent Dosing System
 Micron Cartridge Filter
 High Pressure Pump
 Reverse Osmosis Module System
 R.O. Water Storage Tank
 U.V. System
 Ozone Tank
 The life of plant is 10 years.

2. Jar Washing Machine
 20 litres jar washing machine is purchased from Excel filtration
pvt. ltd.
 The cost of jar washing machine is Rs. 85,000.
 Its dimension is L-20” X W-44” X H-42” (Inches).
 Jar washing machine has 2 washing systems.
i. Hot Water Washing System
ii. Mineral Water Washing System
 Hot Water Washing System:
Put a 20 Liter’s Jar in Downward position on Nozzle. Press
the Red Button. Push the Button to start a Washing Cycle. Adjust
a washing time by Digital Timer which is working in 9.99 Sec
Maximum. Set the Temperature in a washing tank by Digital
Temperature Controller. Please do not set more than 55 degree
C, because more than 55 degree C, transparency of jar becomes
low (It may damage 100 percent transparency of a jar), At the
nozzle Spray time move jar in Rotating position to get proper
cleaning of jar at all side.
 Mineral Water Washing System:
Put a 20 Liter’s Jar in down ward position on nozzle then
Push button to start a washing cycle, this time is being adjusted
with Digital Timer. This time jar is washed through cold product
water. This product water cannot be used at a twice so it will
drain out.

3. Pouch Packing Machine
 Pouch Packing Machine is purchased from Excel filtration pvt. ltd.
 The cost of pouch packing machine is Rs. 1,55,000.
 It’s dimension is L/W/H - 1000M.M./ 850M.M/ 2300M.M.
 It weighs around 350kg. (approx.)
 It has filling capacity of 200ml-250ml.
 It has capacity of 2000-2200 pouches per hour.

4. Pet Bottle Filling Machine

 Pet Bottle Filing Machine is purchased from Excel filtration pvt.
ltd.
 The cost of this machine is Rs. 7,22,000.
 It does the work of bottle rinsing, filling and capping.
 Dimension of this machine is 930mm L/ 880mm W / 2400mm H.
 It’s capacity is 20-22BPM.
 The machine is enclosed with SS covering with Glass.
 It fills 200ml, 500ml, 1litre and 2litre bottles.
 It has filling tank of 150 litre with auto level system.
 Function of Filler / Capper:
 Filling system will be rotary (station) type Gravity filler).
 Filling tank will have filling heads.
 Filling machine is also a neck holding. When bottle gets sealed
with filling valve, Filling Valve opens and filling starts. Filling tank
will have liquid level probe.
 Filling will have liquid level probe system to control level of
mineral water in filling tank.
 As soon as the bottle is being filled by five stage rotary (station)
filling nozzle, bottle will be transferred under the capping head.
 Caps will be picked up by the capping head directly placed on the
bottleneck and tightened.
 The bottle will enter the capping head, cap will be firmly
tightened.
 Duly capped bottles will be transferred on the conveyor to the
shrink tunnel.
The machine also has an A/C drive for controlling the speed of the machine.

5. Shrink Wrapping Machine (Shrink Tunnel)
 Shrink wrapping machine also called as Shrink Tunnel is
purchased from Excel filtration pvt. ltd.
 The cost of this machine is Rs. 1,18,000.
 Shrink Tunnel is connected with Pet bottle filling machine using
S.S. Slate Conveyor.
 It has sensor and inspection screen which makes collate set of
pet bottles & also wraps them in plastic bag automatically.
 It makes collate set of 12 bottles of 1 litre, 24 bottles of 500ml
and 36 bottles of 200ml.

Manufacturing Process Flow Chart
THE BASIC MANUFACTURING PROCESS CONSISTS THE FOLLOWING STEPS
Advance technology by Reverse Osmosis System (Filtration)
Post Filtration & U V Sterilized
Blending with Ozonisation
Quality control & Testing
Bottling Pouch Packing Jar Filling
Dispatching

Explanation of Manufacturing Process
1. Raw water from Bore well is stored in raw water storage tank.
2. Raw water Feed Pump transfers the raw water from raw water storage
tank to Pressure Sand Filter (PSF). Raw water Feed Pump is used to
pump raw water at required pressure so as to enable transfer through
the RO pre-treatment stage.
3. Pressure Sand Filter (PSF)
 PSF is used to filter out suspended solids
in raw water up to 25 micron size.
 The size of this vessel is 325 MM x 1400
MM - (D X H).
 The raw water filtered through PSF is then
passed through ACF.
4. Activated Carbon Filter (ACF)
 ACF is used to remove colour, odour, free
chlorine and some organic matters from
the source water.
 It also removes oil and grease from the
raw water.
 The size of this vessel is 325 MM x 1400
MM - (D X H).
 The raw water filtered through ACF is then
passed through Micron Cartridge Filter
using Anti – Scalant Dosing System.

5. Anti - Scalant Dosing System
 It is an electronic metering pump.
 Anti - Scalant Dosing System ensures non-
adherence of scale causing salts on the
membrane surface by adhering to the crystals of
scale causing salts. Not much change in pH
value.
6. Micron Cartridge Filter (MCF)
 MCF removes micron sized suspended particles
from water so as to protect membrane and high
pressure pump from suspended particles.
 Diameter of Cartridge is 4 inches while length of
cartridge is 20 inches.
 The water treated from MCF is then passed to
High Pressure Pump.
7. High Pressure Pump (HPP)
 HPP is used to boost water energy so as to pass
through the membrane module at high pressure
for obtaining the desired permeates quality.
 HPP is also called Osmotic Pressure System.
 Its Capacity is 1800 LPH.
 It passes the water to RO Module.

8. RO System
 RO System consists of
membranes which houses RO
Membranes that are mounted on
skid.
 RO System is used to reduce
dissolved salts present in water.
 RO system consists of 4 such
membranes.
 Size of membrane is 4 x 40 (D x
L).
 Water treated from RO System is
then stored in Middle Storage
Tank.
9. Middle Storage Tank for product water & Product
water Transfer Pump
 The Water treated from
RO System is stored in
this product water
storage tank to remove
the back pressure in R.O.
membrane elements.
 The water from this
storage tank is pumped
to polishing micron
cartridge filters using
product water transfer pump.

10. Polishing Post Micron Cartridge
Filter
 Product Water Transfer Pump passes the
treated water to polishing Post Micron
Cartridge Filters.
 The water passes through 3 such filters so
as to filter water from 5 micron to 0.2
micron rating & achieve the crystal clear
filtered mineral water.
 1st
, 2nd
& 3rd
filter filters the water upto 5, 2, .2 micron rating
respectively. The water treated through these filters is then
passed to UV Disinfection System.
11. UV Disinfection System
 Ultraviolet disinfection system is specifically designed to
treat microbiologically contaminated ground or surface
waters.
 As water flows past the UV lamp(s) in a UV disinfection
system, microorganisms are exposed to Ultraviolet light
energy at a 253.7nm wave length.
 UV Disinfection offers an effective kill rate of 99.99% of
most living microorganisms such as bacteria & viruses.
 It does not add any harmful chemicals to drinking water
and does not distort the water or affect its pH value.
 UV Disinfected water is then passed to Ozone Generator
System.

12. Ozone Generator System with Ozone Pump
 Ozonation of water is
accepted worldwide as
the most efficient and
natural friendly process
to purify water.
 Ozone Generator System
kills bacteria, virus,
cysts, algae, fungi and
oxidizes nitrogenous
matter in the water making it sparking clear.
 Ozone Generator System ensures longer shelf life of bottled
water.
 Ozonated water ensures protection against all water borne
disease including jaundice.
 This Ozonated Water (Pure mineral water) is then sent to Ozone
Tank Using Ozone Pump.
13. Ozone Tank (Final Product Storage Tank)
 Ozone Tank is the final product storage tank which stores the
final product i.e. Pure Mineral Water.
 This Pure Mineral Water from Ozone Tank then goes for packing
process in 20 litres jars, pouches and pet bottles.
Hence, in this way the whole process of purifying water works

HUMAN RESOURCE
FEASIBILITY

Organizational Chart
Partners
Supervisor
Accountant
Area Sales
Manager
Area sales
manager
Finance
Manager
Production
Manager
Sales Executive
Supervisor
Lab TechnicianLab Technician
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Workers,
Security
Guard,
Drivers &
Helpers
Workers,
Security
Guard,
Drivers &
Helpers

Job Description & Job Specification
Job Description:-
Job Description is an organized factual statement of duties and
responsibilities of specific job. In brief, it should tell what is to be done. It is
a standard of function, in that; it defines the appropriate and authorized
content of job.
Job Specification:-
Job Specification is a statement of minimum acceptance human anilities
necessary to perform a job properly. It is a standard of personnel and
designates the banality required for acceptable performance.

Job Description & Job Specification are
practically applied as follows:
Production Department
1)Production Manager
Job Description
Job Title: Production Manager
Function:
1) Try to apply innovative method to achieve production target in specified
period.
2) To arrange Man power and other sources for production>
3) Planning to have a control over the process and check the deviation.
4) To co-ordinate with administrative department for implementation of
policies and plans.
Duties & Responsibility:
1) Responding for production schedule and management for labor.
2) Regular check of stock purchase and man power condition.
Job Description
Educational Qualification: Graduate in Mechanical Engineer
Skills Required:
1) Capable of Leading Team of workers
2) Good communicational skill and ability to undertake work from
subordinates.
Experience: At least 3 Years in same field.

2) Lab Technician
Job Description
Job Title: Lab Technician
Function:
1) To check out TDS, Salt, UV & Ozone in the Water
2) And other check ups of water..
1) To maintain minerals in water.
Job Specification:
Job Title: Lab Technician
Educational Qualification: M.Sc. in Chemistry.
Experience: At least 2 years as a same position.
3) Assistant Lab Technician
Job Description
Job Title: Assistant Lab Technician
Reporting to: Lab Technician
Function:
1) To assist & work under Lab Technician
Job Specification:
Educational Qualification: B.Sc. in Chemistry.
Experience: At least 1 year as a same position.

4) Workers
Job Description
Job Title: Workers
Reporting to: Supervisor
Function:
1) Work effectively given by Production Manager.
2) To work with co-operation.
1) Follow instructions of Supervisors to inform Manager immediately for
any kinds of defaults.
Job Specification:
Job Title: Workers
Educational Qualification: 12th
standard pass
Skills Required:
1) Technician knowledge about their work & machines.
2) Ability to do any job assigned to them.
Experience: Not Necessary.

Marketing Department
Marketing Manager
Job Description
Job Title: Marketing Manager
Function:
1) To Plan marketing & advertising strategies.
2) To determine the target Segments.
3) To Estimate ads budget out of the total funds.
Duties and Responsibilities & Authority:
1) Responsible for effective competitive strategy Implementation.
2) To create good loyalty for the production in the market.
3) To maintain market of the product.
Job Specification :
Job Title: Marketing Manager (Partner)
Educational Qualification: M.B.A. In Marketing
Skills Required:
1) Innovative knowledge about the market trends, economic trends, etc.
2) Good Communicational skills capable of analyzing different market
trends.
Experience: At least 2-3 year for similar position

Sales Department
Sales Executive
Job Description
Job Title: Sales Executive
Reporting to: Marketing Manager
Function:
1) To carry out all operation for the implementation of advertising, plans
and promotion plan decided by marketing manager.
2) To act as Bridge between Marketing Manager and Customers.
1) To achieve the target responsible for any customer or dealers
complaint about the service.
Job Specification :
Job Title: Sales Executive
Educational Qualification: Bachelor in Any field
Skills Required:
1) Knowledge of surrounding Market.
2) To have innovative ideas.
3) Goode command on Gujarati, English and Hindi Languages.
4) Ability to convince people.
5) Presence of mind
Experience: At least of 1 year

Finance Department
Finance Manager
Job Description
Job Title: Finance Manager
Function:
1) To make proper policies for sound condition of company.
2) To decide appropriate rate of depreciation , Reserves & Surplus.
3) To ascertain budget for all plans & projects.
4) To decide upon inventory of funds of the Company.
1) To check discrepancies in financial records.
2) To ensure optimum & fair use of firm’s financial resources.
3) To coordinate well with accountant & Partners. Analyze financial
position at regular intervals.
Job Specification:
Job Title: Finance Manager (Partner)
Educational Qualification: M.B.A. In Finance
Skills Required:
1) Sharp and Speedy calculation
2) Good Analytical Skill
3) Deep knowledge of Taxation, Account, Laws.
Experience: At least of 4 year

Accountant
Job Description
Job Title: Accountant
Reporting to: Finance Manager
Function:
To assist Finance Manager
Job Specification :
Job Title: Accountant
Educational Qualification: Graduate in commerce field
Skills Required:
1) Knowledge of computer programmes I .e. tally, Ms. Office, etc.
2) Ability to undertake work.
Experience: At least of 1 year as a same position

INTRODUCTION
In the prevailing era of the modernization and globalization, the
company has to keep pace with the newer and the modernized technology.
But only technology up gradation doesn’t lead to an overall development of
the organization. Along with the technological advancements and the
innovations, the company must have a strong marketing department with
the help of which it can market its product to the target segment and can
very easily and rapidly earn the name and the fame for the same. In this far
reaching equally competitive era of modernization, each and every field
requires strong potentiality and good marketing skills. And before entering
into the market any company must analyze that how far it to get survived
into the market.
Before going to market feasibility one must know what is marketing.
According to Leslie Rodger, ‘marketing is the primary management function
which organizes and directs the aggregate of business activities involved in
converting customer purchasing power into effective demand for a specific
product or service and in moving the product or service to the final consumer
or user so as to achieve the company set or other objectives”.

MARKET RESEARCH
According to The American Marketing Association,
“Market research is the systematic gathering, recording, and analysis
of data about problems relating to the marketing of goods and
services.”
Our marketing feasibility report deals with the product.
 OBJECTIVES OF MARKET SURVEY
 To gather preliminary information that will help to know the
market potentiality for a product.
 To know the attitudes of consumers about the acceptance of a
new product.
 To know the competition prevailing in market.
 To get the suggestions for establishing a new brand.
 PRIMARY DATA COLLECTION
A.Research approaches
 Research approach for gathering primary data specifies which research
approach is used among observations, surveys and experiments.
We have used survey research approach in our project.
Research Instruments:
Marketing researchers have a choice of two main research
instruments in collecting primary data.
1) Questionnaires
2) Mechanical Instruments
In our research, we have selected questionnaire as our
research instrument. Most of the questions asked are close-end questions.

 SAMPLING METHOD
A segment of the population selected for marketing research to
represent the population as a whole.
Designing the sample requires three decisions.
a) SAMPLING UNIT.
FIRST WHO IS TO BE SURVEYED?
 Corporate offices
 Shops
 Malls
 Complexes
 Clinics
 Saloons
 Caterers
 Mandap makers
 Restaurants
 Multiplexes
b) SAMPLE SIZE
HOW MANY PEOPLE SHOULD BE SURVEYED?
Though large samples give reliable information,they
cost more.
So,it is not necessary to sample the entire target
market or even a large portion to get reliable results.
So,we have surveyed 200 people in our project.
c) SAMPLING PROCEDURE
HOW SHOULD THE PEOPLE IN THE SAMPLE BE
CHOSEN?
There are two types of samples:-
1. Probability sampling
2. Non probability sampling
We have chosen NON PROBABILITY SAMPLE in our
project.
In this we have chosen JUDGEMENT SAMPLE.
Judgement sample means the researcher uses his or
her judgement to select population members who are
good prospects for accurate information.

So, as we defined in sampling unit Corporate offices
,shops, Malls, Complexes, Clinics, Saloons, Caterers,
Mandap makers ,Restaurants, Multiplexes are good
prospects for our projet and we can get accurate
information from them.
Contact Method:
We have adopted personal interview method, which is
the most versatile method for the research. We have personally interviewed
some customers, dealers and distributors.

4 Ps of Marketing
 The marketing mix is the set of marketing tools the firm uses to
pursue.
 Target marketing is main marketing objective.
 Marketing tools are classified into four groups. They are as:
(1) PRODUCT
(2) PRICE
(3) PROMOTION
(4) PLACE
(1) Product :-
“A product is a commodity which carries a satisfaction itself that a consumer
is willing to consume, thus in short a product is a bundle of satisfaction that
consumer buys”.
Product can be of different forms like services, physical product,
person, place, idea, organization, event, experience, information etc.
SAP Packaged Drinking Water falls under the category of physical
product.
Product is divided into three categories
1) Consumer product
2) Industrial product
3) Durable—non durable product
Here, in our project of packaged drinking water the product is an industrial
product which provides satisfaction to consumers.
1) Core Benefit
2) Basic Benefit
3) Expected Product
4) Potential Product
5) Augmented Product

 Product level of sap packaged drinking water
In planning its market offering, the
marketer needs to think through five levels of product. Each level adds more
customer value and the five constitute a “customer value hierarchy”
(1) Core benefit :-
A core benefit is the most fundamental product
level. It is the basic purpose for which the consumer is really buying
the product. It basically includes the ingredients of product.
Here, packaged drinking water is to satisfy the thirst of the
consumers.
(2) Basic Product :-
At the second level the marketer has to turn
the core benefit into basic benefit. Here the marketer has to put emphasis on
satisfying the basic need of the customer.
The basic products of packaged drinking water are 250 ml pouch,200
ml bottle,1 litter bottle and 20 litters jar.
(3) Expected Product:-
An expected product is a set of attributes
and conditions, which the buyers normally expect when they purchase
the product.
The buyer can normally expect:
1 .Better quality of mineral water.
2. Good taste and purity.
3. Attractive packaging

(4) Augmented product:-
An augmented product is a product
level at which the product contains additional features. These features
are those which are not provided by the existing competitors in the
market. This type of product exceeds the consumer’s expectations.
(5) Potential product:-
A potential product is the maximum possible
level up to which a company can provide the augmented and expected
product in future. Innovation plays large and important part in this type of
product. It is important for the producers at this stage to invest in research.
To concentrate over minerals in the body of individual is the potential
product of packaged drinking water.
2) Price:
Pricing pays important role in today’s world because competition in
market is very high when new firm set a price first time it only factor that
generates the revenues our company decided the prices to enhance sales at
introduction stage.
Product Price
250 ml
pouch
0.45 Rs.
200 ml
bottle
4 Rs.
1 ltr bottle 8 Rs.
20 ltr jars 25 Rs.

3) Place:
Place is concerned with linking the buyers and sellers. It includes the
decision about the channel of distribution means of transportation,
warehousing, inventory control, etc. the seller needs to select a appropriate
place for manufacturing a product in such a way that it fulfills the criteria of
availability to the prospective customers. Marketers should make a product
available at as many place as possible so that it can easily attract the
customer and increase its market share by selling it to them.
a) Location:
SAP PACKAGED DRINKING WATER
Plot no. 25, gota circle,
Gota highway,
Ahmedabad.
b) Distribution channel:
Company Company
Customers Dealers
Customers

PROMOTION TOOLS
Sales Advertisement Personal Direct Marketing Public Relation
Promotion Selling
We use sales promotion, advertising, personal selling, direct marketing, and
public relation as our promotion tools...
1) Sales Promotion: - Coupons and Discount.
2) Direct Selling: - Direct mail and Telephone marketing.
3) Personal Selling: - Through company salesman.
4) Advertisement: - Through different media.
“In our company the main tool of Promotion is Advertisement.”

1) Advertisement:-
"Advertising is the non personal communication of information
usually paid for and usually persuasive in nature, about products, services or
ideas by identified sponsors through the various media.” Now let's take this
statement apart and see what it means.
 NON PERSONAL
First, what is non personal? There are two basic ways to sell
anything: personally and non personal. Personal selling requires the
seller and the buyer to get together. Whereas non personal selling
means here the buyer and seller do not meet personally, but the
purpose is served through a medium of advertisement.
Personal selling is, naturally enough, expensive, since it is labor-
intensive and deals with only one buyer at a time, whereas, non
personal selling can deal with many buyers at a time making it much
cheaper and cost effective and less time consuming.
 INFORMATION
Complete information is telling someone everything there is to
know about the product, what it is, what it looks like, how it works,
what its benefits are. However, to provide complete information about
product is time consuming and difficult.
In advertising, what appears is everything the writer thinks the
customer needs to know about the product in order to make a decision
about the product. That information will generally be about how the
product can benefit the customer.
 PERSUASIVE
"Persuasive" stands to reason as part of the definition of
advertising. The basic purpose of advertising is to identify and
differentiate one product from another in order to persuade the
consumer to buy that product in preference to another.
Companies, through research, try to determine what values
consumers want in their products, and then advertise to show how their
product satisfies the customers' bundle of values better than
competitors' products. To do this, the company must differentiate their
product from competitors.

1. Mission:
Mission refers to setting off, the advertisement goal as well as the
advertising objective our desired objective. We prefer informative
advertisement because our aim is to make target market aware about
our company.
Our advertising objective depends upon the market situation i.e. the
degree of competition.
Once the target market will be covered, we will start reminder
advertising, which aims to stimulate repeat purchase of products.
As our co. is new entrant in the market our main objectives are:-
a) To create consumer and distributor awareness.
b) To create favourable company image and goodwill.
c) To encourage immediate sales.
2. Money:
Although advertising is treated as current expenses part of it is
really an investment that builds up intangible assets called “brand
equity”. Therefore it is necessary to prepare an advertising budget.
There are five specific factors to be considered when setting the
advertising budget:-
1)Stage in product life cycle
In the initial stage, our advertising budget is high because we want to
introduce our product to the customers. Afterwards, it will be low
compared to the initial years.

2)Market share and consumer base
Again our main focus is on covering an enough market share as fast as
possible, so again our budget is high. Once we have a set of loyal
buyers and recognition in the market, we will require less marketing
budget.
3)Competition
There exists a tough competition from the local players as well as the
big players in Packaged drinking water industries, so we try to do more
marketing where focus is on creative advertisement.
4)Advertising frequency
As we are new players in the market, it is important for us to increase
the frequency of our advertisements. When advertising frequency is
high, advertising budget will be high and when it is low, required
money will be less.
The frequency of our advertisement will be once in two months in the
Gujarati newspapers and the frequency of our advertisements through
hordings
And hoardings will be advertised in Marh , April , May , June for whole
months and August , October , December and January for 15 Days.
3. Message
It is all about choosing the message for all our advertising
campaigns. The message impact depends not only on what is said and
but also how it is said and hence the message generation plays an
important role in generating the company image.
For that matter, at SAP PACKAGED DRINKING WATER, we have made the
message as “Have a Sip of SAP from the Nature’s lap”
4. Media:-
By media we can communicate the message to likely customers
or prospects, with a view to influence them in terms of
advertising objective.

Major Media Types:
 Newspaper:
We give our advertisement in ‘Divya Bhaskar’. Our main focus is on the market of
Ahmedabad at this stage, and in Ahmedabad, the circulation of local language news papers is
more than that of English newspapers.
 Hoardings:
Whenever we pass by roads we see hoardings which can
easily influence the customers. We try to promote simple ideas quickly
through hoardings located along heavily travelled streets of Ahmedabad.
Total cost of hordings for the year is 300000.
 Vehicle advertising:
Our advertisement extends to that of vehicle advertisement,
which involves billboards at the back of the CNG rickshaws.
Cost of advertisement:-
Sr.
no.
Particular Annual cost (in
Rs.)
1 Newspaper 2,25,600
2 Hoarding 1,95,300
3 Vehicle 48,000
Total 4,68,900
Newspaper Rate per Sq. cm Frequency Total cost
Divya Bhaskar 4700 6 times in a year
Ad of 8x8
2,25,600

K.S. SCHOOL OF BUSINESS MANAGEMENT
1. Name: __________________________________
2. Address: ____________________________________
________________________________
________________________________
3. Organization Name:________________________
4. What type of organization you have?
o Mall
o Retail
o Factory
o Office
o Educational Institutional/Hostel
o Any other, ___________________________
5. How many employees are there in your organization?
_____________
6. Which sources do you use for drinking water?
o Brought from home
o Packaged purified water
o Any plant
o If any plant, specify ___________________
7. If you have any water purification plant,
Go to Section: C
If you bring water from home,
Go to Section: D

Section-A
1. What quantity do you buy in packaged water?
o 1 litre bottles
o 20 litre cans
If 1 litre bottles, Go to Section: B
2. Which company’s water-can do you purchase?
______________________________
3. Which type of water-can do you purchase?
o Normal water-can
o Cold water-can
4. How many cans of 20 litres do you require in a day?
o 1
o 2
o 3
o More than 3
If more than 3, specify _______________
5. If you need can urgently, do they fulfil your need?
o Yes
o No
6. What price do you pay per can?
_________________
7. Are you satisfied with the services of your water solution
provider?
o Yes
o No
If Yes, why?
_____________________________________
If No, why? _____________________________________

8. What services do you expect?
o Less price
o Best quality
o Rapid supply
o Any other
9. If all services are fulfilled by any other new company, would
you like to switch over?
o Yes
o No
10. What additional services would you expect?
________________________________________________
____________________________________________
 Suggestions:
______________________________________________
______________________________________________
______________________________________________

Section-B
1. Which company’s bottle do you use?
___________________
2. How many bottles do you require in a day?
o 1
o 2
o 3
o 4
o More than 4,specify______________
3. What price do you pay per bottle?
____________
4. Reasons for not using 20 litres cans:-
o High price
o Less requirement
o Not aware
o Any other, please specify ____________________
5. If requirement arises, would you prefer to use 20 litres cans in
future?
o Yes
o No
 Suggestions:
________________________________________________
__________________________________________________
________________________________________

Section-C
1. Water purified plant of which brand you are using?
________________________
2. What is the capacity of your water purified plant?
________________________
3. What is the maintenance cost?
________________________
4. Reasons of not using packaged purified water?
o High prices
o High consumption
o Non-regular supply
o Non trust worthy
o Any other, ________________________________
5. Would you like to switch over to packaged purified water, if it is
-
REGULARLY SUPPLIED
IS AT REASONABLE PRICE
IS OF BETTER QUALITY
o YES
o NO
 SUGGESTIONS:
________________________________________________
__________________________________________________
________________________________________

Section-D
1. Reason of not using packaged purified water?
_______________________________________
2. Are you aware of packaged purified water?
o Yes
o No
3. Would you prefer to use packaged purified water in future?
o Yes
o No
 Suggestions:
___________________________________________________
______________________________________________________
___________________________

SURVEY for 200 ml bottles
1) Name of the organization
2) Area :
3) Which company/Brand do you use?
4) At what prie do you buy?
o Less than 3
o 3-4
o 4-5
5) How many bottles do you require in a day?
o Less than 50
o 50-100
o 100-200
o More than 200
6) At what price do you sale?
o 4
o 5
o More than 5
Suggestions:______________________________________

ANALYSIS
1. What type of organization you have?
As shown in the above pie chart ,from the 200 questionnaires we have
surveyed 2%malls, 29% retail shops, 11% factories, 25% offices, 2.5%
educational institutions and hostels and 30.5% i.e 61 dealers, hotels,
caterers, multiplexes.

2) Which sources do you use for drinking water?
From the above survey, we conclude that majority of people prefer packaged
drinking water, where as some prefer to bring it from home and some prefer
to set their own plant but in very rare case.

Section – A
What quantity do you buy in packaged drinking water?
According to the survey of people who use packaged drinking water i.e 168
from 200 surveys, we get the result that 43.45% of people i.e73 people use
1 ltr. Bottles and 56.55% people i.e 95 people use 20 ltr jars. The reason of
using 20 ltr jars more quantity and less price. The people who purchase 1 ltr
bottles are generally hotels , multiplexes, caterers ,office conferences etc.

Which type of water-can do you purchase?
From the people who use 20 ltr jars i.e 95 from surveyed, 52.63% people
use normal water and 47.37% people use cold water. Also we conclude that
such demand depends upon season.

How many cans of 20 litres do you require in a day?
From the above surveyed data we conclude that nearly 37% organizations
require 2 jars per day, 26.32% organizations require more than 3 jars per
day, such organizations were mostly factories and requires minimum 5 jars
per day because of more employees in an organization and such statistics
also includes hotels which use such jar water in kitchen and also to serve
customers. Nearly 16% organization needs 3 jars per day and 21%
organization use 1 jar per day , such organizations were mostly retail shops.

If you need can urgently, do they fulfill your need?
From the above data surveyed , from the 95 people who use 20 ltr jars,
nearly 52% people answered that they are not provided jars urgently when
they need where as 48% people answered positively.

What price do you pay per can?
According to our price survey, nearly 48% people pay more than 30 rs. as
the cost of chilling water is also included, 21% people pay 23-25rs. , nearly
19% people use 26- 30 rs. And rest of the surveyed people pay 20-22 rs.

Are you satisfied with the services of your water solution provider?
When it comes to the question of satisfaction, 52% people are satisfied from
the service where as others are not because of stinking water, unhygienic
jars, taste of water, price factor, time of supply etc.

What services do you expect?
28% of people surveyed expect rapid supply, 26% people expect other
service such as clean jar, fresh water and better taste of water (as it is
sometimes bitter in taste), 25% of people expect best quality and 21%
people expect less price.

If all services are fulfilled by any other new company, would you like
to switch over?
When it comes to the preference to switch over the other brand of mineral
water 84% people agreed and 16% disagreed.

Which company’s bottle do you use?
We can see the demand survey of 1 ltr bottle in above pie chart, 41% people
demand bisleri brand , 16.44% of people demand oxyrich, the demand of
aava is same as oxyrich, 10.96% people demand aquafina where as 8.22%
people demand aqua because of its less price and 6.85% people use other
brands . such people don’t bother about brand of mineral water.

What price do you pay per bottle?
According to the price survey of 1 ltr bottles, 19.18% of people pay less than
10rs. , 68.49% of people pay 10 to 15 rs. And 12.33% people pay 15 to 20
rs per bottle.

Reasons for not using 20 litres cans
When we asked people why they were not using 20 ltr ans instead of 1 ltr
bottles,73% people answered that they had less requirement, 18% answered
it costs high, 10% answered other reasons such as not trustworthy ,quality
factor etc. and we didn’t found any people who were not aware of such
product.

If requirement arises, would you prefer to use 20 litres cans in
future?

Section D
Reason for not using packaged purified water?
According the survey, 20 people from 200 people surveyed preferred to bring
water from home, 25% of them used it because of hygine factor and 75% of
them used it because of price factor.

Are you aware of packaged purified water?
All people bringing water from home were aware of packaged drinking water.

Would you prefer to use packaged purified water in future?
When we asked them if they are ready to use packaged purified water in
future, 60% of people were ready where 40% were not.

Survey of 200 ml BOTTLES
At what price do you buy?
According to the survey of 100 people / organizations for 200 ml bottle, 60%
paid 3-4 rs per bottle, 22% paid 4-5 rs per bottle, 18% paid less than 3 rs.

How many bottles do you require in a day?
Here we conclude that 45% of organizations require more than 200 20 ml
bottles per day, where as 25% organization require 50 to 100 bottles per day
and 20% organizations require 100 to 200 bottles per day and 10% people
require less than 50 bottles per day.

At what price do you sale?
The organizations who buy such bottle in bulk for the purpose of selling, they
sale mostly at price of 5 rs per bottle, 2% of organization charges more than
5 rs per bottle and 30% of organization who doesn’t have motive of making
profit charges 4 rs. Per bottle.

FINANCILAL FEASIBILITY

Assumptions of Financial Account
 Place is easily available on rent as per our requirements.
 We are already available with one bore well facility, but to fulfill our
requirement we had to place two more bore well.
 Our Manufacturing capacity is 16,000 ltrs per day for the first year.
 Our utilized capacity is 78.72%, 84.61%, 92.23%, 100%, and 100%
for the first five years respectively.
 There are 300 working days in a year.
 We have calculated depreciation on written down value method basis
that follows the norms of companies act 1956.
 The rate of depreciation is taken as per Income Tax Act 1961 so as to
avoid adjustments thereafter.

COST OF PROJECT
SR NO. PARTICULARS AMOUNT (RS.)
1 Machineries 1700000
2 Vehicle 1500000
3 Furniture & Fixtures 492000
4 Miscellaneous Assets 849000
5 Utilities 56000
6 Working Capital 982680
7 Rent Deposit 50000
Total Initial Cost of Project 5629680
8 Contingencies (%) 1.50%
Total Cost of Project 5714125.2
MEANS OF FINANCE
No. Particular Amount
1 Partner’s Capital 6000000
Total 6000000

Machineries
No. Name Qty. Price per unit Total
1 R.O. Plant 1 485000 485000
2 Jar Washing machine 1 85000 85000
3 Bottle packing machine 1 722000 722000
4 Shrink Wrapping Machine 1 118000 118000
5 Pouch packing machine 1 155000 155000
6 Total 1565000
7 Add: 5% VAT 78250
8 Add :Transportation cost 16000
9 Add: Installation Cost 40750
Total 1700000
Furniture and Fixtures
1 Cupboard 2 10000 20000
2 Office table 6 1500 9000
3 Fans 10 1300 13000
4 Refrigerator 1 10000 10000
5 Air conditioner 4 25000 100000
6 Tube light 20 150 3000
7 Executive Chairs 4 2500 10000
8 Regular Chairs 10 500 5000
9 Sofa set 1 10000 10000
10 Exhaust Fan 10 1200 12000
11 Partition 300000
Total 492000

Miscellaneous Assets
1 Computer with Printer 2 40000 80000
2 Generators 1 44000 44000
3 Bore well 2 2,50,000 500000
4 20 ltr Jar 1500 150 225000
Total 849000
Cost of Utilities
1 Fire Fighting Equipments 2 5500 11000
2 Intercom System 1 10,000 10,000
3 Telephone Deposit 2 5,000 5,000
4 Electricity Deposit 1 30,000 30,000
Total 56000
Statement of Depreciation
Particular 2013-14 2014-15 2015-16 2016-17 2017-18
Machinery 255000 216750 184237.5 156601.88 133111.59
Furniture 49200 44280 39852 35866.8 32280.12
Computer 48000 19200 7680 3072 1229
Vehicle 225000 191250 162562.5 138178.1 117451.4
Misc. Assets 81600 69360 58956 50112.6 42595.71
Total Dep. 658800 540840 453288 383831.38 326667.82

Working Notes for Depreciation
Machinaries
Cost=1700000 Rate of depreciation 15%
Particular Year 1 Year 2 Year3 Year 4 Year 5
Opening Balance 1700000 1445000 1228250 1044012.5 887410.63
Depreciation 255000 216750 184237.5 156601.88 133111.59
Closing Balance 1445000 1228250 1044012.5 887410.63 754299.03
Furniture
Opening Balance 492000 442800 398520 358668 322801.2
Depreciation 49200 44280 39852 35866.8 32280.12
Closing Balance 442800 398520 358668 322801.2 290521.08
Computer
Opening Balance 80000 32000 12800 5120 2048
Depreciation 48000 19200 7680 3072 1228.8
Closing Balance 32000 12800 5120 2048 819.2
Vehicle
Opening Balance 1500000 1275000 1083750 921187.5 783009.38
Depreciation 225000 191250 162562.5 138178.13 117451.41
Closing Balance 1275000 1083750 921187.5 783009.38 665557.97
Miscellaneous Assets
Opening Balance 544000 462400 393040 334084 283971.4
Depreciation 81600 69360 58956 50112.6 42595.71
Closing Balance 462400 393040 334084 283971.4 241375.69

Statement of Working Capital
Particular
2013-
14
2014-
15
2015-
16
2016-
17
2017-
18
CURRENT ASSETS
Raw material requirement - - - - -
W.I.P. requirement - - - - -
Finished Goods requirement
:
Pouch 6400 7040 7744 8518 9370
Bottle: 200 ml & 1 ltr 7200 7920 8712 9583 10542
Jar 3270 3597 3957 4352 4788
Total 16870 18557 20413 22453 24700
Cash Requirement 425750 468325 515158 566673 623341
Debtors Requirement 889500 978450 1076295 1183925 1302317
TOTAL CURRENT ASSETS 1332120 1465332 1611865 1773052 1950357
CURRENT LIABILITIES
Creditors Required 349440 384384 422822 465105 511615
TOTAL WORKING CAPITAL 982680 1080948 1189043 1307947 1438742

Statement of Capacity, Production & Sales
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18
Installed Capacity 22000 22000 22000 22000 22000
Capacity Utilization(%) 78.73 84.61 92.23 100 100
Production 17320 18615 20290 22000 22000
Op. Stock of FG 0 2470 5504 7627 11876
Cl. Stock of FG 2470 5504 7627 11876 15473
Sales in Qty. 14850 15581 18167 17751 18403
Cost Of Sale 23408.57 23396.04 23537.87 25478.07 26708.68
Sales Realization 29650 31873.75 34742.39 37695.49 39013.85
Profit Realization 6241.43 8477.71 11204.52 12217.42 12305.16
Design of Salary Structure
Designation Perso
n
Salary per
month
Amt. Salary per
annum
Administrative Personnel
Accountant 1 8000 8000 96000
Partner’s Salary 4 40000 16000
0
1920000
Total 2016000
Factory personnel
Labour 14 5000 70000 840000
Supervisor 2 13000 26000 312000
Lab Technician 2 15000 30000 360000
Security Guard 3 5000 15000 180000
Total 1692000
Sales Executives
Sales Persons 6 15000 90000 1080000
Driver and
Helper
8 5500 44000 528000
Total 1608000
Total Salary 5316000

Statement of Overheads
Factory Overhead
Particulars
2013-
14
2014-
15
2015-
16
2016-17 2017-18
Factory Rent 600000 600000 660000 726000 798600
Salary 1692000 1692000 1692000 1861200 1954260
Electricity 180000 189000 198450 208373 218791
Repairs & Main. 10000 12500 15000 17500 20000
Depreciation 610800 521640 445608 380759.38 325438.82
Insurance 180000 180000 180000 180000 180000
Total Factory O.H. 3272800 3195140 3191058 3373832.38 3497089.82
Administrative Overhead
Particulars
2013-
14
2014-
15
2015-
16
2016-17 2017-18
Salary 2016000 2016000 2016000 2217600 2328480
Telephone & Internet Exps 22650 23200 22000 24700 24000
Depreciation 48000 19200 7680 3072 1229
Printing & Stationery 5635 6120 5800 6400 6800
Other Exps 9800 10200 10460 9950 10300
Professional & legal fees 37870 41700 46770 51250 57170
Total Administrative O.H. 2139955 2116420 2108710 2312972 2427979
Selling & Distribution Overhead
Particulars
2013-
14
2014-
15
2015-
16
2016-17 2017-18
Salary 1608000 1608000 1608000 1768800 1857240
Petrol Expenses 540000 594000 653400 718740 790614
Repair and Maintenance of
Vehicle
11200 32300 34000 36900 38800
Advertisement Exp. 468900 508600 514700 470530 448460
Total S&D O.H. 2628100 2742900 2810100 2994970 3135114

Cost Sheet
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18
Opening Stock of Raw Mat. - - - - -
Cost of Raw Mat. Con.
Purchases
Total Purchases - - - - -
Less: Closing Stock
Total
Total Cost of Raw Mat. Con. 0 0 0 0 0
Direct Labour 840000 840000 840000 924000 970200
Prime Cost 840000 840000 840000 924000 970200
Add:-Factory & Admin OH 3272800 3195140 3191058 3373832.38 3497089.82
Factory cost 4112800 4035140 4031058 4297832.38 4467289.82
Add: Admin Overhead 2139955 2116420 2108710 2312972 2427979
Cost of Production 6252755 6151560 6139768 6610804.38 6895268.82
Add:-Op. Stock of FG 0 16870 18557 20413 22453
Less:-Cl. Stock of FG -16870 -18557 -20413 -22453 -24700
Cost of Goods Sold 6235885 6149873 6137912 6608764.38 6893021.82
Add:-S&D OH 2191200 2272700 2335720 2563340 2722104
Cost Of Sales 8427085 8422573 8473632 9172104.38 9615125.82
Add:-Profit 2246915 3051977 4033628 4398272.63 4429859.18
Total Sales 10674000 11474550 12507260 13570377 14044985

Profit & Loss account
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18
Income:
Sales 10674000.00 11474550.00 12507260.00 13570377.00 14044985.00
Total Income 10674000.00 11474550.00 12507260.00 13570377.00 14044985.00
Expenditure:
Factory
Expenses
3272800.00 3195140.00 3191058.00 3373832.38 3497089.82
Admin
Expenses
2139955.00 2116420.00 2108710.00 2312972.00 2427979.00
Selling & Dist.
Expenses
2628100.00 2742900.00 2810100.00 2994970.00 3135114.00
20 ltr Jar W/O 45000.00 45000.00 45000.00 45000.00 45000.00
Total
Expenditure
8085855.00 8099460.00 8154868.00 8726774.38 9105182.82
P.B.D.I.T. 2588145.00 3375090.00 4352392.00 4843602.63 4939802.18
Depreciation 658800.00 540840.00 453288.00 383831.38 326667.82
P.B.I.T. 1929345.00 2834250.00 3899104.00 4459771.25 4613134.35
Interest to
Partners
600000.00 600000.00 600000.00 600000.00 600000.00
P.B.T. 1329345.00 2234250.00 3299104.00 3859771.25 4013134.35
Tax Paid 410767.61 690383.25 1019423.14 1192669.32 1240058.51
Profit After Tax 918577.40 1543866.75 2279680.86 2667101.93 2773075.84
PAT to Sales 8.61 13.45 18.23 19.65 19.74
PBT to Sales 12.45 19.47 26.38 28.44 28.57
PBIT to Sales 18.08 24.70 31.17 32.86 32.85
PBDIT to
Sales
24.25 29.41 34.80 35.69 35.17

Balanace Sheet
Particulars
2013-
14
2014-
15
2015-16 2016-17 2017-18
SOURCES OF FUNDS
Partner’s Capital 6000000 6018577 6062444 6342125 6509227
Add: Profit for the year 918577 1543867 2279681 2667102 2773076
Less: Drawings 900000 1500000 2000000 2500000 2500000
Closing Capital 6018577 6062444 6342125 6509227 6782303
TOTAL SOURCES OF
FUND
6018577 6062444 6342125 6509227 6782303
APPLICATION OF
FUNDS
Fixed Assets
Plant & Machinery 1700000 1445000 1228250 1044012.5 887410.625
Less: Dep. 255000 216750 184237.5 156601.875 133111.5938
1445000 1228250 1044012.5 887410.625 754299.0313
Furniture 492000 442800 398520 358668 322801.2
Less: Dep. 49200 44280 39852 35866.8 32280.12
442800 398520 358668 322801.2 290521.08
Computer 80000 32000 12800 5120 2048
Less: Dep. 48000 19200 7680 3072 1229
32000 12800 5120 2048 819
Vehicle 1500000 1275000 1083750 921187.5 783009.4
Less: Dep. 225000 191250 162562.5 138178.1 117451.4
1275000 1083750 921187.5 783009.4 665558
Misc. Assets 544000 462400 393040 334084 283971.4
Less: Dep. 81600 69360 58956 50112.6 42595.71
462400 393040 334084 283971.4 241375.69
20 ltr Jar 225000 180000 135000 90000 45000
Less: Written off 45000 45000 45000 45000 45000
180000 135000 90000 45000 0
Total Fixed Assets 3837200 3251360 2753072 2324240.625 1952572.801
Other Asset 56000 56000 56000 56000 56000

Investment
Current Assets, Loans
& Advances
Inventory
Raw Material 0 0 0 0 0
Finished Goods 16870 18557 20413 22453 24700
Sundry Drs. 889500 978450 1076295 1183925 1302317
Cash Balance 425750 468325 515158 566673 623341
Bank Balance 1142697 1674136 2344010 2821040 3334988
Total Current Assets 2474817 3139468 3955876 4594091 5285346
Less: Current Liabl. &
Prove.
Creditors 349440 384384 422822 465105 511615
Net Current Assets 2125377 2755084 3533053 4128987 4773731
Preliminary Exp. - - - - -
Total Application Of
Funds
6018577 6062444 6342125 6509227 6782303

Cash Flow Statement
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18
SOURCES OF
FUNDS:
Profit before
Tax
1329345 2234250 3299104 3859771.25 4013134.35
Depreciation 658800 540840 453288 383831.38 326667.82
Written off 20
ltr Jar
45000 45000 45000 45000 45000
Partner’s
Capital
6000000 0 0 0 0
Increase In
Sundry
Creditors
349440 34944 38438.4 42282.2 46510.50
TOTAL
SOURCE OF
FUNDS
8382585 2855034 3835830.4 4330884.83 4431312.68
APPLICATION
OF FUND
Increase -
Fixed Assets
4541000 0 0 0 0
Other Assets 56000
Tax Paid 410767.61 690383.25 1019423.14 1192669.32 1240058.51
Profit
Distributed
900000 1500000 2000000 2500000 2500000
Increase in
Debtors
889500 88950 97845 107630 118392
Increase in
Stock of F.G.
16870 1687 1856 2040 2247
TOTAL
APPLICATION
OF FUND
6814137.61 2281020.25 3119124.14 3802339.32 3860697.51
Opening
Balance
0.00 1568447.40 2142461.15 2859167.41 3387712.92
Surplus 1568447.40 574013.75 716706.26 528545.51 570615.16
Closing
Balance
1568447.40 2142461.15 2859167.41 3387712.92 3958328.08

Break Even Analysis
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18
Sales 10674000 11474550 12507260 13570377 14044985
Less : Variable Cost
Variable Power Cost 170000 179000 188450 198373 208791
Repair & Main. 10000 12500 15000 17500 20000
Salary & Wages Factory 1692000 1692000 1692000 1861200 1954260
Salary & Wages Admin 2016000 2016000 2016000 2217600 2328480
Telephone 20250 20800 19600 22300 21600
Printing & Stationery 5635 6120 5800 6400 6800
Other Expense 9800 10200 10460 9950 10300
Professional & legal fees 37870 41700 46770 51250 57170
Salary 1608000 1608000 1608000 1768800 1857240
Petrol Expenses 540000 594000 653400 718740 790614
Repair and Maintenance of
Vehicle
11200 32300 34000 36900 38800
Advertisement Exp. 468900 508600 514700 470530 448460
Total Variable Cost 6589655 6721220 6804180 7379543 7742515
Contribution 4084345 4753330 5703080 6190834 6302470
Less : Fixed Cost
Fixed Power Cost 10000 10000 10000 10000 10000
Depreciation 610800 521640 445608 380759.38 325438.82
Depreciation admin 48000 19200 7680 3072 1229
Insurance 180000 180000 180000 180000 180000
Rent 600000 600000 660000 726000 798600
Traveling Expenses
Telephone 2400 2400 2400 2400 2400
Total Fixed Cost 1451200 1333240 1305688 1302231.38 1317667.82
PROFIT 2633145 3420090 4397392 4888602.63 4984802.18
PVratio=Contribution/Sales 38.26% 41.42% 45.60% 45.62% 44.87%
BEP=Fixed cost/PVratio 3792556.41 3218444.55 2863466.63 2854505.66 2936408.24

Evaluation of Project

Pay Back Period
Particulars 2013-14 2014-15 2015-16 2016-17 2017-18
PAT 918577.395 1543866.75 2279680.864 2667101.934 2773075.838
Add:-
Depreciation
658800 540840 453288 383831.375 326667.8238
Total Cash
Flow
1577377.395 2084706.75 2732968.864 3050933.309 3099743.661
Year Cash Flow
Cumulative
Cash Flow
Remaining
Cash Flow
Cost of
Project
2013-14 1577377.395 1577377.4 4136747.81
2014-15 2084706.75 3662084.15 2052041.06
2015-16 2732968.864 6395053.01 5714125.2
2016-17 3050933.309 9445986.32
2017-18 3099743.661 12545730
Cash flow Month
In Third Year 6395053.009 12
2052041.055 4
Pay Back Period is 2 Years and 4 Months.
Net Present Value
Cash Flow P.V. Factor @ 10% Amount
1577377.4 0.909 1433836.05
2084706.8 0.826 1721967.78
2732968.9 0.751 2052459.62
3050933.3 0.683 2083787.45
3099743.7 0.621 1924940.81
Present Value of Cash Inflows 9216991.71
Less: Present Value of Cash
Outflows 5714125.2
N.P.V. 3502866.51

Internal Rate of Return
1577377.4 0.909 1433836.05
2084706.8 0.826 1721967.78
2732968.9 0.751 2052459.62
3050933.3 0.683 2083787.45
3099743.7 0.621 1924940.81
Outflows 5714125.2
N.P.V. 3502866.51
1577377.4 0.77 1214580.59
2084706.8 0.59 1229976.98
2732968.9 0.46 1257165.68
3050933.3 0.35 1067826.66
3099743.7 0.27 836930.79
Outflows
5714125.2
N.P.V. -107644.50
IRR = Low Rate + Positive NPV * (High Rate – Low Rate)
Positive NPV – Negative NPV
IRR= 29.40

Ratio Analysis
1)
Current Assets
Ratio
Years
In
Times
=C.A. 1st 7.08
C.L. 2nd 8.17
3rd 9.36
4th 9.88
5th 10.33

2) Quick Ratio Years
In
Times
= Current Assets - Stock 1st 7.03
Current Liabilities - B.O.D. 2nd 8.12
3rd 9.31
4th 9.83
5th 10.28

3) Net Profit Ratio Years In %
= Net Profit ×100 1st 8.61%
Sales 2nd 13.45%
3rd 18.23%
4th 19.65%
5th 19.74%

4) Operating Ratio Years In %
= PBIT ×100 1st 18.08%
Sales 2nd 24.70%
3rd 31.17%
4th 32.86%
5th 32.85%

5)
Return on
Investment
Years In %
= PBIT ×100 1st 32.06%
Capital Employed 2nd 46.75%
3rd 61.48%
4th 68.51%
5th 68.02%

6)
Fixed Assets
Turnover Ratio
Years
In
times
= Sales 1st 2.78
Fixed Assets 2nd 3.53
3rd 4.54
4th 5.84
5th 7.19

7)
Total Assets
Turnover Ratio
Years
In
times
= Sales 1st 1.77
Total Assets 2nd 1.89
3rd 1.97
4th 2.08
5th 2.07

Swot Analysis
Strengths
With the increase in living standards of people, now they spend more on mineral
water. As we are offering good quality at reasonable price so it will definitely
attract customers, so our venture is less risky.
Our company offers different size of packaged drinking water, each of them
offers the same quality. Each and every aspect of the business has been
measured against the standards of quality control methods adopted by us.
We are using fully automatic, long life, and stainless steel plant as per ISI
norms.
Plant is having capacity of 1000LPH which is sufficient according to the
fluctuations of demand in the market.
We are providing the product at low price as compared to competitiors.
Weakness
Limited distribution network, only within ahmedabad and gandhinagar because
of high transportation cost.
Starting mineral water plant requires ISI permission. Getting ISI permission
takes time.
Opportunity
Water is essential for one’s living. It is required in every event whether it is good
or bad. So it creates large share of market.
As ahmedabad and gandhinagar are having large number of industries, fast
malls, big buildings, residential expansion,restaurants and more
housing, so future requirement of mineral water will be very high.
This business will create long term relationship with dealers and customers.
Threat
There are too many competitiors existing in the market.
If new firm will enter then the market share will decrease.

BIBLIOGRAPHY
1. Principles of Marketing – 13th
edition
By Philip Kotler and Gary Armstrong
2. Financial Management
By IM Pandey

WEBOGRAPHY
 www.wikipedia.com
 www.watertreat.in
 www.mineralwaterplants.net

Feasibility Study

More Related Content

What's hot

Similar to Feasibility Study

Feasibility Study